Standard&Poor's Ratings Services base its ratings on BancorpSouth Bank on its "adequate" business position, "adequate" capital and earnings, "moderate" risk position, "above average" funding, and "adequate" liquidity scores (as our criteria define them). The stand-alone credit profile (on BancorpSouth Bank is 'bbb'. The stable outlook reflects our expectation BancorpSouth Bank's credit quality, capital adequacy as measured by Standard&Poor's risk-adjusted capital (RAC) ratio, and profitability will remain stable throughout 2011 and into 2012. If credit quality were to deteriorate such that NPAs (including other real estate owned assets) approach 7% of gross loans leading to higher credit costs and reduced profitability, or if the bank's RAC ratio falls below 7%, we could revise the outlook to negative
