NEW YORK--()--Today, Kroll Bond Rating Agency (KBRA) issued a global rating methodology for banks and bank holding companies. The new rating methodology describes the analytic factors supporting ratings assigned to the deposits, debt and other senior obligations of commercial banks and bank holding companies (BHCs). These ratings will be expressed using KBRA’s long-term and short-term rating scales. KBRA’s ratings on bank obligations will leverage the firm’s 24-year history of assigning financial strength ratings (FSRs) to nearly all U.S. deposit taking institutions and a large number of non-US banks. “KBRA’s established track record of identifying banks at risk, well in advance of failure, gives us great confidence in the quality of our published FSRs,” notes James Nadler, KBRA’s President and Chief Operating Officer.
“KBRA’s established track record of identifying banks at risk, well in advance of failure, gives us great confidence in the quality of our published FSRs”
In addition to the FSR, which is published quarterly for U.S.-based banks, the new methodology relies on stress tests and a qualitative analysis of the rated bank’s strategy, risk governance and operating environment. Also, bank obligation ratings may incorporate potential credit support from governments, regional bodies, mutual groups or parent organizations. Finally, for banks domiciled in countries subject to currency transfer risk, bank obligation ratings may be constrained by the sovereign’s rating.
The report, Global Bank & Bank Holding Company Rating Methodology, can be found at www.krollbondratings.com.
About Kroll Bond Rating Agency
Kroll Bond Rating Agency, Inc. (www.krollbondratings.com) is registered with the SEC as a nationally recognized statistical rating organization (NRSRO). Kroll Bond Rating Agency was established in 2010 to restore trust in credit ratings by establishing new standards for assessing risk and by offering accurate, clear, and transparent ratings.