NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) has assigned a senior unsecured debt rating of BBB+, subordinated debt rating of BBB, and short-term debt rating of K2 to Hanmi Financial Corporation (NASDAQ: HAFC, “the Company”), a bank holding company headquartered in Los Angeles, California. In addition, KBRA has assigned senior unsecured debt and deposit ratings of A-, a subordinated debt rating of BBB+, and short-term debt and deposit ratings of K2 for the subsidiary bank, Hanmi Bank. The Outlook on all long-term ratings is Stable.
The ratings for Hanmi Financial Corporation are supported by consistent operating performance through recent years, sound credit metrics, and a robust capital base. The ratings are also reflective of the institution’s disciplined growth strategies and attractive geographic presence, which underpins footprint expansion. The ratings are primarily constrained by the Company’s elevated exposure to commercial real estate loans, relatively new leadership team with short tenure at the Bank, and the Bank’s historical losses related to the 2008 financial downturn. Secondary constraints include a spread reliant revenue streams and the Bank’s presence in the highly competitive Korean-American market niche.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology, published on February 19, 2016.
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