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Kroll affirms Sandy Spring Bancorp following Revere Bank deal announcement

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Kroll affirms Sandy Spring Bancorp following Revere Bank deal announcement

Kroll Bond Rating Agency affirmed the ratings for Sandy Spring Bancorp Inc. following the announcement that the Olney, Md.-based company is acquiring Rockville, Md.-based Revere Bank.

Regarding the affirmation of Sandy Spring Bancorp's existing ratings, the rating agency believes the transaction is largely credit neutral, though with some potential positive long-term earnings implications.

Kroll views the deal as a positive credit event from the perspective of Revere Bank's subordinated note holders. It noted Sandy Spring Bancorp's higher long-term ratings and track record of successful bank acquisitions, and the technical uplift from bank-to-bank conversion of the notes, considering that Revere Bank lacks a holding company structure.

The ratings affirmed for Sandy Spring Bancorp include its senior unsecured debt rating of BBB+, subordinated debt rating of BBB and short-term debt rating of K2. The outlook for the company's long-term ratings is stable.

Kroll also affirmed the senior unsecured debt and deposit ratings of A-, subordinated rating of BBB+ and short-term debt and deposit ratings of K2 for Sandy Spring Bancorp unit Sandy Spring Bank.

It also placed Revere Bank's senior unsecured debt and deposit ratings of BBB, subordinated debt rating of BBB- and short-term debt and deposit ratings of K3 on Watch Upgrade.