NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) releases 2017 U.S. Bank Rating Outlook including key rating factors, financial trends and financial ratios by rating level.
While some headwinds exist for KBRA’s rated bank universe, which primarily consists of regional and super-community banks, the rating outlook remains stable. This outlook takes into account a myriad of internal and external factors. Internal factors include solid funding structures, improved asset quality metrics resulting from sound underwriting and a generally thorough understanding by management of operating markets. External factors include rising interest rates, stable to stronger real estate asset values in most markets and improving economic conditions overall. Rating constraints are diverse and include concentrated exposure to real estate (valuations for which show signs of peaking) and substantial reliance upon spread-derived income for most institutions as well as an increasing trend towards shareholder friendly capital management regimes that is pressuring capital levels.
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About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).