MUMBAI (Thomson Financial) - Fitch Ratings said it has cut the rating
outlook of Central Pacific Financial Corp. (CPF) and its bank unit Pacific Bank
to negative from stable, citing the potential for additional financial stress
brought on by CPF's exposure to the California residential real estate market,
which has already impacted earnings performance and credit quality.
"That said, CPF's exposure to residential real estate in California is
somewhat limited and the company has been aggressively exiting the market by
successfully selling portions of the portfolio," the agency noted.
The ratings on the two entities were affirmed, including the 'BBB' long-term
issuer default rating and 'F2' short term IDR.
Fitch said CPF's ratings continue to be supported by a healthy capital and
reserve base, given its franchise and product concentrations, as well as its
limited earnings diversity.
TFN.newsdesk@thomson.com
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