NEW YORK--(BUSINESS WIRE)--BankUnited, Inc.'s (BKU) recent announcement regarding senior management succession planning does not have any immediate impact on the company's current ratings and outlook, according to Fitch Ratings.
On Aug. 31, 2016, BKU announced that Raj Singh, the company's Chief Operating Officer, will succeed John Kanas, the company's Chairman, President and Chief Executive Officer, as President and CEO effective Jan. 1, 2017. Kanas will continue to serve as Chairman of the Board of Directors. Singh, along with Kanas, was one of the founders of BKU in 2009.
Replacing Singh as COO will be Thomas Cornish, who currently serves as the bank's President, Florida region. Cornish joined the bank in 2014 and will report to Singh.
Key man risk is one of our rating sensitivities for BKU. Fitch believes that key man risk is mitigated by Singh's promotion to CEO, continued management bench strength, and Kanas retaining the role of Chairman. The announcement also brings further clarity to succession planning, which we believe should be viewed positively overall.
Fitch affirmed BKU's ratings with a Stable Outlook in January 2016, reflecting the company's solid developing franchise, seasoned management team, and good asset quality metrics in the non-covered loan portfolio.
Additional information is available on www.fitchratings.com