Cadence Bank's asset quality metrics have improved since closing its 2021 merger with Cadence Bancorporation (legacy Cadence), which broadened its competitive market position and reduced its exposure to certain higher risk loan portfolios, in our view. S&P Global Ratings views loan reserves as significant, which we think provide the bank a meaningful buffer given the recent economic contraction and likely higher loan losses. We raised the long-term issuer credit rating on Cadence Bank by one notch to 'BBB+' and affirmed our 'A-2' short-term rating. The stable outlook reflects our expectation that Cadence will maintain financial metrics commensurate with similarly rated peers while asset quality and funding metrics gradually normalize, amid recent economic weakness and tighter monetary policies. On Oct. 25,
