...Recent Rating Action: Fitch Ratings affirmed First Horizon National Corp. (FHN) and its primary banking subsidiary, First Tennessee Bank, N.A. (FTBNA), in January 2015 at `BBB'. FHN's current rating and Rating Outlook reflect its relatively tepid earnings performance on a consolidated basis and additional legal overhang from prior strategies, offset by a solid franchise in the U.S. Southeast and strong capital levels. Earnings Performance Muted: FHN's earnings performance remains relatively weak, compared with higher-rated peers, and still well below pre-crisis levels. Strategic initiatives to cut fixed costs and lower credit costs have helped to improve profitability. However, Fitch expects FHN's consolidated earnings performance to remain depressed relative to higher-rated issuers over the medium term due to costs associated with the company's nonstrategic segment. Regional Bank Segment Strong: FHN's core business lines (regional bank and capital markets) have maintained adequate performance...
