Kroll Bond Rating Agency Assigns BBB & K3 Senior Unsecured & Short-Term Debt Ratings to Investar Holding Corporation

NEW YORK--()--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 for Investar Holding Corporation (NASDAQ:ISTR), a bank holding company headquartered in Baton Rouge, Louisiana. In addition, KBRA has assigned senior unsecured debt and deposit ratings of BBB+, a subordinated debt rating of BBB, and short-term debt and deposit ratings of K2 for the subsidiary bank, Investar Bank. The Outlook on all long-term ratings is Stable.

The ratings are supported by Investar Holding Corporation’s solid capital position, strong credit culture and conservative risk appetite, and comprehensive risk management complemented by bench depth across the various areas of risk management. The ratings are constrained by the narrow diversity in revenue streams with significant concentration in spread-derived revenues, comparatively weaker deposit franchise, and below peer earnings metrics, though these are partially offset by a deposit rich acquisitive strategy which is expected to help diversify the deposit base and lower funding costs.

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).

Contacts

Analytical:
Kroll Bond Rating Agency
M Scott Durant, 301-969-3248
Associate Director
sdurant@kbra.com
or
Joseph Scott, 646-731-2438
Managing Director
jscott@kbra.com
or
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com
or
Follow us on Twitter!
@KrollBondRating

Contacts

Analytical:
Kroll Bond Rating Agency
M Scott Durant, 301-969-3248
Associate Director
sdurant@kbra.com
or
Joseph Scott, 646-731-2438
Managing Director
jscott@kbra.com
or
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com
or
Follow us on Twitter!
@KrollBondRating