NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigned a preferred stock rating of BB+ for TriState Capital Holdings, Inc. (NASDAQ: TSC) (“the Company”), a bank holding company headquartered in Pittsburgh, Pennsylvania. The BB+ rating for TSC’s non-cumulative perpetual preferred stock is notched from the BBB rating for TSC’s senior unsecured debt and subordinated debt rating of BBB-. On March 5, 2018, KBRA affirmed other ratings for TSC as well as ratings of its subsidiary, TriState Capital Bank (“the Bank”). The Outlook on all long-term ratings is Positive.
The Positive Outlook for the long-term ratings reflects the resilience in TSC’s earnings and capital to KBRA’s forward looking economic stress scenarios. Furthermore, the Positive Outlook is a result of the continued enhancement in the Bank’s risk profile in recent years, and the positive impact the change has had on the credit quality of TSC’s loan portfolio. In addition, the potential for earnings accretion through revenue growth in Chartwell Investment Partners, LLC from organic or acquisitive expansion is a positive factor. The ratings are constrained by TSC’s comparatively low net interest margin and below average earnings metrics, although core profitability is expected to improve in 2018 due to continued improvements in bank efficiencies as well as increased scale of operations. The Bank’s elevated level of noncore funding is an additional constraint on the ratings.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016. Additionally, KBRA’s approach to bank preferred notching can be found here.
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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.