Kroll Bond Rating Agency (KBRA) releases a comment on CenterState Bank Corporation’s (NASDAQ: CSFL) ("CenterState") proposed merger of equals with South State Corporation (NASDAQ: SSB) ("South State").
On January 27, 2020, CenterState Bank Corporation (KBRA senior BHC rating: BBB+) and Colombia, South Carolina-based, South State Corporation announced a proposed merger of equals, in which South State would become the legal surviving entity. In KBRA’s view, the transaction could be a potentially positive credit event for CenterState’s subordinated noteholders given the added scale and geographic diversity throughout the Southeast in mostly high-growth markets coupled with solid pro forma metrics and the prospect of improved core profitability. Moreover, given CSFL’s extensive history of successful bank acquisitions and integrations, KBRA anticipates a similarly smooth process for this transaction, which is expected to close in the third quarter of 2020.
To access the comment, click here.
The ratings are based on KBRA’s Bank & Bank Holding Company Global Rating Methodology published on October 16, 2019.
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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. KBRA is also 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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