Fitch Downgrades L-T IDR of Regions & Affiliates to 'BBB+' from 'A-'; Outlook Remains Negative

CHICAGO--(Business Wire)--
Fitch Ratings has downgraded the long-term Issuer Default Rating (IDR) of
Regions Financial (RF) and its subsidiary to 'BBB+' from 'A-'. The Rating
Outlook is Negative. A complete list of all ratings follows at the end of this
release.

The downgrade of RF's ratings reflects the continued deterioration in credit
quality, and expectations of rising credit costs. While Fitch expected the
company to endure increased credit stress in its homebuilder and Florida home
equity portfolios, as well as in its sizeable commercial real estate (CRE) book,
the recent level of deterioration has exceeded Fitch's original projections.
Nonperforming asset additions were considerable at $1.8 billion and $1.7 billion
in second quarter-2009 (2Q'09) and 3Q'09, respectively. Fitch remains concerned
with RF's CRE exposure as market fundamentals continue to weaken, and expects
that RF will report high level of provision expenses well into 2010. RF's
exposure to CRE loans, including construction loans, comprises 39% of total
loans, which represents a relatively larger exposure than similarly rated peers.
Elevated credit costs will likely remain a considerable drag on earnings for the
foreseeable future. Also underlying the rating action, RF's pre-provision net
revenues are weaker on a relative basis to similarly rated peers.

Somewhat offsetting the weak asset quality profile, RF's recently augmented
capital base provides support for the ratings at their new level. RF raised $2.5
billion in capital related to the results of the Supervisory Capital Assessment
Program. In addition, both RF and Regions Bank continue to maintain a
significant amount of borrowing capacity, and a large level of liquid assets.
The current ratings of RF and its subsidiaries also incorporate their solid
market position in the southeastern U.S. Fitch currently views RF's capital and
liquidity resources as sufficient to withstand anticipated stress within the
context of expectations for an investment grade company. However, until trends
in asset quality establish some evidence of bottoming, further rating actions
remain possible and the Rating Outlook remains Negative.

RF is a $140 billion financial holding company headquartered in Birmingham,
Alabama. RF operates almost 2,000 branches in 16 states across the South,
Midwest and Texas. RF provides traditional commercial, retail and mortgage
banking services, as well as investment banking, asset management, trust, mutual
funds, and securities brokerage services through its wholly-owned subsidiary,
Morgan Keegan.

Fitch has downgraded the following ratings with a Negative Rating Outlook:

Regions Financial Corporation

--Long-term IDR to 'BBB+' from 'A-';

--Senior debt to 'BBB+' from 'A-';

--Individual to 'C' from 'B/C';

--Short-term IDR to 'F2' from 'F1';

--Subordinated debt to 'BBB' from 'BBB+';

--Preferred stock to 'BBB-' from 'BBB'.

Regions Bank

--Long-term IDR to 'BBB+' from 'A-';

--Short-term IDR to 'F2' from 'F1';

--Long-term deposits to 'A-' from 'A';

--Individual to 'C' from 'B/C';

--Senior debt to 'BBB+' from 'A-';

--Subordinated debt to 'BBB' from 'BBB+'.

AmSouth Bank

--Subordinated debt to 'BBB' from 'BBB+'.

Regions Financing Trust II, III

--Preferred stock to 'BBB-' from 'BBB'.

Union Planters Corporation

--Senior debt to 'BBB+' from 'A-';

--Subordinated debt to 'BBB' from 'BBB+'.

AmSouth Bancorporation

--Subordinated debt to 'BBB' from 'BBB+'.

Fitch has affirmed the following ratings:

Regions Financial Corporation

--Support at '5';

--Support floor at 'No Floor'.

Regions Bank

--Long-term debt guaranteed by TLGP at 'AAA';

--Short-term debt guaranteed by TLGP at 'F1+';

--Short-term deposits at 'F1';

--Support at '4';

--Support floor at 'B'.

Additional information is available at 'www.fitchratings.com'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE
AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF
CONDUCT' SECTION OF THIS SITE.

Fitch Ratings
Julie Solar, 312-368-5472, Chicago
John Mackerey, 212-908-0366, New York
or
Media Relations:
Brian Bertsch, 212-908-0549, New York
Email: brian.bertsch@fitchratings.com

Copyright Business Wire 2009