Kroll Bond Rating Agency placed Independent Bank Group Inc.'s long-term ratings, including the senior unsecured debt rating of BBB+, on Watch Upgrade following the announcement of the company's proposed merger of equals with Texas Capital Bancshares Inc.
Independent Bank Group's short-term debt rating was affirmed at K2. All long- and short-term ratings of the company's unit, Independent Bank, were placed on Watch Upgrade.
In Kroll's view, the proposed MOE will enhance Independent Bank Group's credit profile by making the loan book and business mix more diverse and by "increasing operating scale significantly in economically vibrant markets." The rating agency also believes that the deal carries "manageable integration and execution risks to creditors," given the largely in-market nature of the transaction.
Kroll plans to resolve the rating Watch Upgrade status after the completion of the merger, which is expected to occur in mid-2020.