S&P Global Ratings affirmed its unsolicited BBB- rating on First Horizon National Corp. following the completion of its merger of equals with IBERIABANK Corp.

The rating agency also affirmed its unsolicited long-term issuer credit rating of BBB on First Horizon Bank. The outlook remains stable.

The ratings affirmation reflects the potential credit positives of the newly combined entity despite possible delays in achieving merger synergies caused by uncertainties related to COVID-19, according to the agency.

Ratings also expects the merger to provide First Horizon with better scale to potentially increase its presence within existing markets and expand into adjacent ones, which in turn would enhance earnings power and operating efficiency.

Additionally, Ratings lowered its issuer credit rating on IBERIABANK Corp. to BBB- from BBB and its issuer credit rating on IBERIABANK to BBB from BBB+. The ratings were subsequently withdrawn. At the time of withdrawal, the outlook on both entities was stable.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.