NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (“KBRA”) has assigned a senior unsecured debt rating of BBB+, a subordinated rating of BBB, and a short term rating of K2, to Bremer Financial Corporation (Bremer), a bank holding company based in Saint Paul, Minnesota. KBRA has also assigned a senior deposit rating of A- and a short-term debt rating of K2, respectively, for Bremer Bank, National Association (the Bank), the primary bank subsidiary of Bremer Financial Corporation. The outlook on all ratings is stable.
The A- rating is based on the Bank’s financial fundamentals as indicated by sound capitalization, strong and stable earnings results during the downturn, and solid asset quality. The rating is also tempered by the Bank’s moderately high efficiency ratio and commercial real estate (CRE) lending concentrations, as well as by the fact that Bremer as an organization is still in the process of building the internal systems and controls needed to support a multi-state bank holding company above $10 billion in total assets. The rating is also balanced against the lack of potential systemic support at the holding company level by the Federal Reserve System and other regulators due to the enactment of the Dodd-Frank law in 2010.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology, published on May 2, 2013.
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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).