Kroll Bond Rating Agency Releases Research Report: “A Focus on Energy Lending”

NEW YORK--()--Kroll Bond Rating Agency (KBRA) has released a research report entitled: “A Focus on Energy Lending.” With the sharp drop in downdraft in energy prices and particularly oil over the past nine months, Kroll Bond Rating Agency (KBRA) has assessed current and potential effects on banks in our rated universe. The report makes the following additional points:

  • Of note, based on our most recent discussions with bank management, smaller regional and community banks appear to have the best grasp of credit risk in the oil sector due to intensive credit underwriting and monitoring efforts.
  • If energy prices remain depressed for a prolonged period, however, pressure on asset quality and earnings could build over time and lead to elevated provision expenses.
  • As the next few quarters unfold, KBRA will be carefully monitoring the situation for any signs of significant deterioration beyond our rating expectations.

To view the report, please use the following link: www.krollbondratings.com/show_report/2030

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 Contacts:
Kroll Bond Rating Agency
Joe Scott, Senior Director
jscott@kbra.com, (646) 731-2438
or
Marjan Riggi, Managing Director
mriggi@kbra.com, (636) 731-2354
or
Christopher Whalen, Senior Managing Director
cwhalen@kbra.com, (646) 731-2366

Contacts

Analytical Contacts:
Kroll Bond Rating Agency
Joe Scott, Senior Director
jscott@kbra.com, (646) 731-2438
or
Marjan Riggi, Managing Director
mriggi@kbra.com, (636) 731-2354
or
Christopher Whalen, Senior Managing Director
cwhalen@kbra.com, (646) 731-2366