NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) has assigned the senior unsecured debt rating of BBB, subordinated debt rating of BBB-, and short-term debt rating of K3 for Southern National Bancorp of Virginia, Inc. (NASDAQ: SONA, “the Company") a bank holding company headquartered in Mclean, Virginia. Moreover, KBRA has assigned the deposit rating of BBB+, senior unsecured debt rating of BBB+, subordinated debt rating of BBB, and short term debt and deposit ratings of K2 to the banking subsidiary, Sonabank (“the Bank”). The outlook on all long-term ratings is stable.
The ratings are supported by Southern National’s healthy earnings metrics, highly efficient operating model, well-experienced management team, and solid risk-based capital ratios. The ratings are primarily constrained by the Company’s spread-reliant earnings streams, relatively low market share, integration risk of large scale transformative acquisition, and asset quality metrics weaker than rating category.
After the close of business on December 13, 2016, the Company announced a definitive agreement to acquire Glen Allen, Virginia based Eastern Virginia Bankshares, Inc. (NASDAQ: EVBS) (KBRA rating report: https://www.krollbondratings.com/show_report/4200) KBRA views this transaction as neutral for the short-term and potentially positive for the medium to long-term contingent upon the successful integration of the transaction which may subsequently lead to an expanded geographical footprint, diversified loan portfolio, and a larger source of core deposits.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016.
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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).