Kroll Bond Rating Agency Assigns Senior Unsecured Debt Rating of BBB+ to First Interstate BancSystem, Inc.

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 K2 to Billings, Montana based First Interstate BancSystem, Inc. (NASDAQ: FIBK)(“the Company”). KBRA has also assigned deposit and senior unsecured debt ratings of A-, a subordinated debt rating of BBB+, and short-term deposit and debt ratings of K2 to the lead subsidiary, First Interstate Bank. The Outlook on all long-term ratings is Stable.

The ratings for First Interstate BancSystem, Inc. are supported by the Company’s steady overall performance, including stable returns, a solid liquidity position with ample core deposits, and strong risk based capital ratios. Ratings are also underpinned by FIBK’s diversified loan portfolio, broad scope of product offering, and experienced management team. Ratings are primarily constrained by the level of nonperforming assets relative to that of peers; potential acquisition related challenges with Cascade Bancorp, the Bank’s largest merger deal to date; indirect lending exposure; and comparatively high efficiency ratio. KBRA’s outlook assumes continued stability in profitability ratios, above average liquidity profile, and manageable asset quality metrics, as well as the successful integration of the Cascade Bancorp acquisition.

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

Kroll Bond Rating Agency
Analytical Contacts:
Ashley Phillips, 301-969-3185
Director
aphillips@kbra.com
or
Joseph Scott, 646-731-2438
Managing Director
jscott@kbra.com

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
Ashley Phillips, 301-969-3185
Director
aphillips@kbra.com
or
Joseph Scott, 646-731-2438
Managing Director
jscott@kbra.com