KBRA Assigns Senior Unsecured Debt Rating of BBB for QCR Holdings, Inc.
NEW YORK--(BUSINESS WIRE)--Feb 1, 2019--Kroll Bond Rating Agency (KBRA) assigns a senior unsecured debt rating of BBB, subordinated debt rating of BBB-, and short-term debt rating of K3 to QCR Holdings, Inc. (NASDAQ: QCRH) (“QCR” or “the Company”), a multi-bank holding company headquartered in Moline, Illinois. KBRA also assigns deposit and senior unsecured debt ratings of BBB+ and short-term deposit and debt ratings of K2 for the following bank subsidiaries of QCRH: Quad City Bank and Trust Company, Cedar Rapids Bank and Trust Company, Community State Bank, Rockford Bank and Trust Company, and Springfield First Community Bank. The Outlook for all long-term ratings is Stable.
The ratings for QCR are supported by sound long-term asset quality performance and a highly experienced management team with extensive market knowledge within each of its market localities. Moreover, the Company has demonstrated solid loan growth and a healthy pipeline augmented by recent bank acquisitions. Additionally, management’s commitment to sustaining earnings diversity with solid fee revenue contributions was further supported by the acquisition of the Bates Companies, which KBRA views favorably. Despite QCR’s recent acquisitions and operating/functional structure with several autonomous bank charters and operations, the Company has demonstrated largely positive progress in improving its efficiency ratio over a multiyear period. Partly constraining the financial profile are QCR’s below average core capital ratio and above average noncore funding relative to respective KBRA peers. That said, KBRA also acknowledges the notable earnings and capital progress QCR has made since extinguishing a number of higher cost legacy debt obligations over the past several years.
The ratings are based on KBRA’s 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 designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is 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.
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CONTACT: Analytical Contacts:
Bryan So, Director
Joe Scott, Managing Director
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE
SOURCE: Kroll Bond Rating Agency
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PUB: 02/01/2019 05:17 PM/DISC: 02/01/2019 05:16 PM