...Affirmation Reflects Stable Financial Profile: The affirmation of Zion Bancorporation, N.A.'s (ZION) Long-Term Issuer Default Rating (IDR), Viability Rating (VR) and Stable Outlook reflects the company's strong asset quality, improving capital, solid funding, and stable franchise. Solid Franchise in Western U.S.: ZION has a solid franchise in its core markets and strong penetration in small-business lending within its footprint. However, it has limited fee-revenue diversity and a higher reliance on spread-based income than peers. This lack of revenue diversity constrains its ratings. Adequate Risk Management: Fitch Ratings views ZION's risk controls and underwriting standards as appropriate for its business mix. The bank's risk function provides centralized oversight of credit policy decisions across its network of banks. However, ZION has a higher tolerance for concentration risk than most peers, as shown by its commercial real estate (CRE) exposure. CRE exposure was 164% of risk- based...
