In Brief: Hibernia Rated A-Minus On Long-Term Debt

Duff & Phelps Credit Rating Co. recently initiated coverage of Hibernia Corp. and its subsidiary Hibernia National Bank, in response to the bank's recent $250 million shelf registration.

Hibernia Corp. in New Orleans filed its shelf July 15.

The ratings for the holding company include BBB-plus for its senior debt, BBB for its subordinated debt, and BBB-minus for the bank's preferred stock.

Duff & Phelps rated the holding company's long-term debt A-minus and its subsidiary's short-term obligations D-1.

Ratings analyst Charles Orabutt said Hibernia has reported "good bottom- line results and abnormally low loan-loss provisions," since it has refocused its lending to retail and small business in its own region.

In the '80s and '90s, the company suffered considerable loan losses because of out-of-market lending, he added.

Duff & Phelps will continue to monitor the company's ability to maintain core earnings and its new credit scoring strategy for its small business lending, said Mr. Orabutt.

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