S&P; Lowers Security Pacific Outlook: The New...

S&P; Lowers Security Pacific Outlook: The New York credit rating agency Standard & Poor’s said it affirmed its Security Pacific Corp. ratings, but lowered its outlook on the Los Angeles bank to “negative” from “stable.” Security Pacific cut its dividend by 40% and said its problem loans will increase in the first quarter by $350 million to $450 million. S&P; said the dividend cut will help conserve capital but added that problems in its disbanding merchant bank are pushing problem loans to very high levels.