As of Friday, March 1, 2013
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ALBANY, Ga. — Synovus Financial (NYSE: SNV) and Synovus Bank, the parent company of SB&T, ended February on a high note as Standard & Poor’s increased the long-term counterpart credit rating for both organizations.
S&P bumped up Synovus Financial’s rating to “B+” from a “B” and Synovus Bank’s rating to “BB” from “BB-.”
“We expect that loan performance will improve further in 2013 and that the company could redeem its TARP preferred shares in the second half of 2013, which we would likely view favorably,” S&P stated in a release Friday.
The rating change comes as Synovus Financial undergoes an effort to cut $30 million in debt from the organization.
“We continue to be encouraged by positive signs such as this,” Mark Lane, president and CEO of SB&T Bank, the local affiliate of Synovus Bank, said Friday. “This news comes on the heels of six consecutive quarters of profitability including a recent fourth quarter earnings announcement of $713 million. Based on these successes, Synovus and its affiliates are off to a good start in 2013.”
Some media reports say that Synovus still owes $900 million in Troubled Asset Relief Program or TARP funding.
SB&T spokesperson Lisa Lassiter said that Synovus plans on paying that TARP balance off by the end of year.