NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has assigned a senior unsecured debt rating of BBB, subordinated debt rating of BBB-, and a short-term rating of K3 to Synovus Financial Corp. (NYSE: SNV or “the Company”), a bank holding company headquartered in Columbus, Georgia. In addition, KBRA has assigned a long-term deposit rating of BBB+, senior unsecured debt rating of BBB+, and short-term rating of K2 to its subsidiary, Synovus Bank (“the Bank”). The outlook on all ratings is stable.
The ratings are supported by SNV’s continued improvement in asset quality, the strategic shift away from riskier construction and development loans, diversified earnings streams, and above peer TCE ratio. The ratings are also supported by SNV’s healthy, and improving, efficiency ratio, which has reinforced a stable earnings trend over recent years. The ratings are primarily constrained by moderately below average ROA for the rating category, lower than peer regulatory capital ratios at the parent company level, and weak performance during the financial downturn.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on January 28, 2015.
A full rating report will be available in upcoming weeks.
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).