NEW YORK--(BUSINESS WIRE)--On January 17, 2018, Kroll Bond Rating Agency (KBRA) assigned a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 for Lakewood, Ohio based First Mutual Holding Co. (FMHC). KBRA also assigned deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2 to FMHC’s subsidiary, First Federal Savings and Loan Association of Lakewood. The Outlook on all long-term ratings is Stable.
The ratings are supported by FMHC’s above-average capital ratios, strong asset quality metrics, and sound infrastructure and controls. The ratings are constrained by FMHC’s comparatively low profitability which largely reflects a relatively weaker net interest margin (NIM) and operating efficiency. However, FMHC has generated relatively stable profitability over a multi-year period and management is viewed by KBRA as being conservative. In common with many like sized peers, FMHC has more limited diversification by product and geography versus large institutions.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016.
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
