Kroll Bond Rating Agency on Nov. 30 affirmed Luther Burbank Corp.'s senior unsecured debt rating of BBB, subordinated debt rating of BBB- and short-term debt rating of K3.
It also affirmed subsidiary Luther Burbank Savings' deposit and senior unsecured debt ratings of BBB+, subordinated debt rating of BBB and short-term deposit and debt ratings of K2.
The ratings reflect the Santa Rosa, Calif.-based company's ability to stay "profitable through multiple economic cycles and the most recent financial crisis," as well as its improving efficiency. However, they also take into account Luther's "elevated double leverage" and lack of lending diversification.
The outlook on the long-term ratings is stable.
