NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has assigned a senior unsecured debt rating of BBB- and short-term debt rating of K3 for CRB Group, Inc. (“CRB”), a bank holding company headquartered Fort Lee, New Jersey. 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 K3 for the subsidiary bank, Cross River Bank (“Cross River” or “the Bank”). The Outlook on all long-term ratings is Stable.
The ratings are supported by Cross River’s very strong earnings historical performance, robust capitalization profile, historically sound credit quality, expertise of management and the board of directors in key strategic areas of the Bank, and competitive advantage in its payment platform offerings. The ratings are constrained by the Bank’s engagement in internet-based marketplace lending, a still-developing industry with recent headwinds, regulatory and legal uncertainty, and as-yet untested automated underwriting models. Additionally, the Bank is still building out a dynamic liquidity framework to match the growing complexity of the institution. Also constraining ratings is the moderately elevated risk profile given the Bank’s engagement in marketplace lending and payments, though this is offset partially by the expertise of management and the board of directors.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016.
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