Moody's cuts Regions Financial senior debt to Baa3

NEW YORK May 18 (Reuters) - Moody's Investors Service cut the senior debt of Regions Financial Corp (RF.N) by three notches to Baa3, the lowest rung of investment grade on Monday, saying it was likely to report losses at least through this year because of its exposure to the housing market.

Moody's outlook for the U.S. bank was negative, which "considers the possibility that in a more pronounced economic downturn than is currently expected, the company's performance might be negatively impacted," the ratings agency said in a statement.

The rating actions had no impact on the government-backed debt issued by Regions Bank and guaranteed by the Federal Deposit Insurance Corp (FDIC), which remains at the highest possible rating of Aaa with a stable outlook, Moody's said.