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 K2 to Richmond, Virginia based Union Bankshares Corporation (NASDAQ: UBSH). KBRA has also assigned deposit and senior unsecured debt ratings of A- and short-term debt and deposit ratings of K2 to the lead subsidiary, Union Bank & Trust. In addition, KBRA has assigned a subordinated debt rating of BBB+ at the bank level. The outlook on all long-term ratings is stable.
The ratings for Union Bankshares Corporation are supported by the Company’s proven financial performance across various economic cycles, conservative underwriting standards, and diversified product and services offering. Ratings are also underpinned by UBSH’s defensible market share in Virginia and experienced management team. Ratings are primarily constrained by a high concentration in real estate loans, above peer net loss on construction & development loans, narrow geographic footprint relative to larger peers, and mediocre though improving expense management.
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).