Fitch Places City National on Ratings Watch Negative on Commercial Real Estate Concerns

Fitch Ratings has placed the ratings for City National Corp. and its bank subsidiary, City National Bank, Beverly Hills, Calif., on Rating Watch Negative, citing expectations of further asset quality deterioration, particularly in the construction and land development portfolio, as well as other portions of the commercial real estate book and the commercial and industrial loan portfolio. City, because it targeted affluent clientele for its private banking business and because of conservative underwriting, has higher than average asset quality in its consumer loan book. However, Fitch said, the issues in the California and Nevada housing markets and unemployment rates continue to pressure consumer spending and will likely result in further asset quality weakness in other parts of City's commercial loan book.