| [January 19, 2017] |
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Kroll Bond Rating Agency Comments on Renasant Corporation's Acquisition of Metropolitan BancGroup, Inc.
Kroll Bond Rating Agency (KBRA) comments on Renasant Corporation's
Acquisition of Metropolitan BancGroup, Inc.
The report makes the following key points:
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Renasant Corporation (NASDAQ:RNST) ("Renasant"), the
parent company of Renasant Bank, and Metropolitan BancGroup,
Inc. ("Metropolitan"), the parent company of Metropolitan
Bank, have announced the signing of a definitive merger agreement
whereby Metropolitan and its subsidiary bank will merge with and into
Renasant.
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The all-stock transaction is currently valued at approximately $190.2
million and is expected to close in the third quarter of 2017.
-
The successful integration of the transaction is expected to catapult
Renasant over the $10 billion asset threshold.
-
On June 10, 2016, KBRA assigned a senior unsecured debt rating of BBB,
subordinated debt rating of BBB-, and short-term debt rating of K3 to
Metropolitan BancGroup, Inc. In addition, KBRA assigned deposit and
senior unsecured debt ratings of BBB+, a subordinated debt rating of
BBB, and short-term debt and deposit ratings of K2 to the subsdiary
bank, Metropolitan Bank.
-
On August 10, 2016, KBRA assigned a senior unsecured debt rating of
BBB+, subordinated debt rating of BBB, and short-term debt rating of
K2 to Renasant Corporation. Moreover, KBRA assigned deposit and senior
unsecured debt ratings of A-, a subordinated debt rating of BBB+, and
short-term debt, and deposit ratings of K2 to Renasant Bank. The
outlook on the long-term ratings is stable.
-
In KBRA's view, this transaction is neutral to Renasant's ratings and
positive for Metropolitan. The rating on Metropolitan's 6.5%
subordinated notes will likely be upgraded to BBB from BBB-, in line
with the subordinated debt ratings of Renasant Corporation, once the
transaction closes.
The ratings are based on KBRA's Global
Bank and Bank Holding Company Rating Methodology published
on February 19, 2016.
Please click here
to view the report.
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).
View source version on businesswire.com: http://www.businesswire.com/news/home/20170119006283/en/
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