Moody's Investors Service Inc said itdowngraded 50 mln dlrs of debt of Allied Bancshares Inc and the
lead bank, Allied Bank of Texas.
    Cut were the parent's senior debt to Ba-3 from Baa-2 and
commercial paper to Not Prime from Prime-2. The lead bank's
long-term deposits were reduced to Ba-1 from Baa-2 and
short-term deposits were cut to Not Prime from Prime-2.
    Moody's cited the effects of a weak operating environment
on Allied's asset quality and profitability. The rating agency
expects nonperforming loans to remain high by industry
standards because of exposure to energy and real estate.
 Reuter
