...Ratings Upgraded: On Dec. 15, 2017, Fitch Ratings upgraded First National of Nebraska Inc.'s (FNNI) Long- and Short-Term Issuer Default Ratings (IDRs) to `BBB' from `BBB¡' and `F2' from `F3', respectively. The Rating Outlook is Stable. The upgrades reflect FNNI's reduction in risk appetite in its credit card business, sound asset quality and solid earnings performance. Reduction in Card Risk Appetite: Fitch views positively FNNI's decision to discontinue marketing its national card portfolio, which has been a key driver of volatility historically and to continue growing its co-branded and agent card portfolios. These portfolios have demonstrated lower loss content and should aid in producing more stable operating performance over time for FNNI relative to prior cycles. Solid Earnings Relative to Peers: FNNI has typically generated relatively strong earnings compared to similarly rated peers over recent years due to its solid credit card franchise, which generates high margins and good levels...
