LegacyTexas Financial Group, Inc., the holding company for LegacyTexas Bank, today announced that the Company and the Bank have received investment grade ratings with a stable outlook from Kroll Bond Rating Agency.
KBRA assigned the Company BBB+ for senior unsecured debt, BBB for subordinated debt, and K2 for short-term debt. The Bank was assigned A- for deposits and senior unsecured debt and K2 for short-term deposits/debt. The outlook for all ratings was noted as stable. KBRA noted that the ratings were supported by the Company’s “strong management team and infrastructure, sound asset quality, and performance of KBRA’s stress testing.” KBRA also noted that solid earnings metrics and a comparatively healthy local economy contributed to the ratings, which were tempered by the Company’s limited operating history in its current form, minimal geographic diversification, and the impact of the recent merger with LegacyTexas Group, Inc.