A recent capital raise helped Synovus Financial Corp. stave off a ratings downgrade by Moody's Investors Service.
The ratings agency on Monday confirmed its B3 subordinated debt rating for the Columbus, Ga., banking company, with a "stable" outlook.
Moody's had placed the rating under review for a possible downgrade on April 22. Synovus announced less than a week later that it had raised more than $1 billion in capital by selling common stock and other securities.
Moody's attributed its delay to awaiting the outcome of the capital-raising effort.
"Moody's believes that Synovus' capital position is now sufficient to absorb the elevated credit costs associated with its commercial real estate exposure, which makes downward rating pressure unlikely in the intermediate-term," the ratings agency said in a press release.
