Kroll Bond Rating Agency Comments on Renasant Corporation’s Acquisition of Metropolitan BancGroup, Inc.

NEW YORK--()--Kroll Bond Rating Agency (KBRA) comments on Renasant Corporation’s Acquisition of Metropolitan BancGroup, Inc.

The report makes the following key points:

  • Renasant Corporation (NASDAQ:RNST) ("Renasant”), the parent company of Renasant Bank, and Metropolitan BancGroup, Inc. ("Metropolitan"), the parent company of Metropolitan Bank, have announced the signing of a definitive merger agreement whereby Metropolitan and its subsidiary bank will merge with and into Renasant.
  • The all-stock transaction is currently valued at approximately $190.2 million and is expected to close in the third quarter of 2017.
  • The successful integration of the transaction is expected to catapult Renasant over the $10 billion asset threshold.
  • On June 10, 2016, KBRA assigned a senior unsecured debt rating of BBB, subordinated debt rating of BBB-, and short-term debt rating of K3 to Metropolitan BancGroup, Inc. In addition, KBRA assigned deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term debt and deposit ratings of K2 to the subsidiary bank, Metropolitan Bank.
  • On August 10, 2016, KBRA assigned a senior unsecured debt rating of BBB+, subordinated debt rating of BBB, and short-term debt rating of K2 to Renasant Corporation. Moreover, KBRA assigned deposit and senior unsecured debt ratings of A-, a subordinated debt rating of BBB+, and short-term debt, and deposit ratings of K2 to Renasant Bank. The outlook on the long-term ratings is stable.
  • In KBRA’s view, this transaction is neutral to Renasant’s ratings and positive for Metropolitan. The rating on Metropolitan’s 6.5% subordinated notes will likely be upgraded to BBB from BBB-, in line with the subordinated debt ratings of Renasant Corporation, once the transaction closes.

The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016.

Please click here to view the report.

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:
Amina Ouattara, 301-969-3187
Senior Analyst
aouattara@kbra.com
or
Joe Scott, 646-731-2438
Managing Director
jscott@kbra.com
or
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com

Contacts

Kroll Bond Rating Agency
Analytical:
Amina Ouattara, 301-969-3187
Senior Analyst
aouattara@kbra.com
or
Joe Scott, 646-731-2438
Managing Director
jscott@kbra.com
or
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com