Kroll Bond Rating Agency affirmed Plano, Texas-based LegacyTexas Financial Group Inc.'s senior unsecured debt rating of BBB+, subordinated debt rating of BBB and short-term debt rating of K2.
Additionally, the rating agency affirmed the deposit and senior unsecured debt ratings of A-, subordinated debt rating of BBB+, and short-term deposit and debt ratings of K2 for the company's unit, LegacyTexas Bank.
The outlook on all long-term ratings is stable.
In affirming LegacyTexas Financial Group's ratings, Kroll considered, among other things, the company's "sound earnings performance" and a "highly efficient" operating model with an efficiency ratio below 50%. Kroll views the company's merger deal with Houston-based Prosperity Bancshares Inc. as a "potential credit positive" to LegacyTexas Financial Group's bondholders.
