NEW YORK--(BUSINESS WIRE)--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 K3 to Toms River, New Jersey based OceanFirst Financial Corp. (NASDAQ: OCFC or “OceanFirst”). Moreover, KBRA has 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 subsidiary bank, OceanFirst Bank (“the Bank”). The outlook on all long-term ratings is stable.
Ratings are underpinned by sound financial performance, an experienced management team with strong knowledge of local markets, conservative risk management practices, better-than-average risk-based capital ratios, and a solid core deposit base. In common with most peers, constraints include a spread-reliant revenue stream and geographic concentration compared with large U.S. banks. In addition, OceanFirst faces potential merger-related risks, although acquisitions appear to be relatively low risk. Acquisitions are in core New Jersey markets with sizeable cost save opportunities and significant purchase accounting marks on acquired loan portfolios. OceanFirst will benefit from improved market share in its core markets.
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).
