Executive Summary
This global rating methodology describes the key credit and risk factors that Kroll Bond Rating Agency, LLC and its rating affiliates (collectively, “KBRA”) consider when assigning deposit, debt, and other obligation ratings to banks and other depository institutions and bank holding companies. Ratings assigned to banks and bank holding companies involve separate processes as detailed below. The methodology was developed with the goal of producing and maintaining credit ratings that perform in accordance with KBRA’s published rating definitions. For information on KBRA’s rating scales, please see KBRA’s Rating Scales and Definitions.
The Rating Approach
The rating determinants include both quantitative and qualitative risk assessments. The rating process begins with a quantitative fundamental credit analysis. This quantitatively based analysis incorporates the consideration of an institution’s…