Kroll Bond Rating Agency on Feb. 22 affirmed RBB Bancorp's senior unsecured debt rating of BBB+, subordinated debt rating of BBB and short-term debt rating of K2.
It also affirmed subsidiary Royal Business Bank's deposit and senior unsecured debt ratings of A-, subordinated debt rating of BBB+ and short-term deposit and debt ratings of K2.
Los Angeles-based RBB has "very strong financial metrics," according to Kroll, and the ratings reflect its "conservative underwriting practices and solid position in the Chinese-American business banking niche market." The ratings are, however, constrained by spread-reliant sources of revenue, an above-average loan-to-core deposit ratio and a high real estate lending concentration.
All long-term ratings still have a "stable" outlook.