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NEW YORK — Fitch Ratings on Wednesday cut Comerica Inc.'s investment-grade debt ratings, saying the bank's profitability is increasingly threatened by higher credit costs and the recession.
Fitch lowered its issuer default ratings on Comerica and its lead bank Comerica Bank one notch to A from A+, keeping the rating within investment-grade range. The agency also cut its rating on Comerica's preferred securities to BBB+ from A, and lowered the company's senior debt to A from A+, among other ratings downgrades involving Dallas-based Comerica.
Fitch assigned a negative outlook to the ratings, signaling the possibility of a further downgrade if business conditions worsen.
Fitch said higher credit costs and a lower net interest margin will challenge Comerica's profitability this year. The recession also could hurt Comerica's commercial banking business, Fitch said.
While banks generally have been hurt by rising numbers of bad loans, Fitch said Comerica's performance "has been relatively good to date" in part because of it focus on commercial loans.
Shares of Comerica rose 25 cents, or about 1.2 percent, to finish at $21.40.
