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Home>KBRA Assigns Senior Unsecured Debt Rating of A- for Hilltop Holdings Inc.

KBRA Assigns Senior Unsecured Debt Rating of A- for Hilltop Holdings Inc.

KBRA Assigns Senior Unsecured Debt Rating of A- for Hilltop Holdings Inc.

10/06/2017

KBRA Assigns Senior Unsecured Debt Rating of A- for Hilltop Holdings Inc.

Kroll Bond Rating Agency (KBRA) has assigned a senior unsecured debt rating of A-, subordinated debt rating of BBB+, and short-term debt rating of K2 for Dallas, Texas based Hilltop Holdings Inc. (NYSE:HTH). In addition, KBRA has assigned deposit and senior unsecured debt ratings of A, a subordinated debt rating of A-, and short-term deposit and debt ratings of K1 for PlainsCapital Bank, the lead subsidiary. The Outlook on all long-term ratings is Stable.

The ratings are supported by Hilltop’s comparatively strong earnings performance, highly diversified revenue mix, strong positioning in the Texas market at PlainsCapital Bank, robust and low risk mortgage flow business with the ability to maintain sufficient scale, well positioned broker-dealer franchise, strong capital position, diversified funding mix, and favorable asset quality metrics and loss history. The ratings are largely constrained by geographic concentration compared with larger, regional financial institutions. There also exists some potential for merger and acquisition risks, though any concerns are largely mitigated by management’s considerable acquisition experience.

To access the full report, click here .

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

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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).

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