KBRA Assigns BBB Senior Unsecured Debt Rating to SmartFinancial, Inc.
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 SmartFinancial, Inc. (NASDAQ: SMBK), (“the Company”) a bank holding company headquartered in Knoxville,
Tennessee. Additionally, KBRA assigns deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and
short-term deposit and debt ratings of K2 for its subsidiary, SmartBank. The Outlook for all long-term ratings is Stable.
The ratings are supported by strong asset quality metrics over the past several years, with expectations for this trend to
continue. The Company’s locally experienced and credit-focused management team coupled with the benign credit environment have been
major catalysts for the positive asset quality trends. Additionally, improvement in core profitability metrics and a comfortable
capital position with the prospect of improved internal capital generation support the ratings. The ratings and Stable Outlook
assume that capital ratios will remain at or above current levels going forward. The ratings are primarily constrained by possible
integration risk of future deals given the Company’s acquisitive nature, though a solid track record exists for SMBK to date.
Moreover, ratings are constrained by a slightly higher dependence on noncore funding compared to peers and a heavy reliance on
spread-derived income.
The ratings are based on KBRA’s
Global Bank & Bank Holding Company Rating Methodology published on February 19, 2016.
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here to review the report.
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About KBRA and KBRA Europe
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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Analytical:
Kroll Bond Rating Agency
Thomas Curley, 301-969-3245
Senior Analyst
tcurley@kbra.com
or
Joe Scott, 646-731-2438
Managing Director
jscott@kbra.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20180911005674/en/