[May 22, 2018] |
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KBRA Comments on the Proposed Acquisition of MB Financial, Inc. (MBFI) by Fifth Third Bancorp (FITB)
Kroll Bond Rating Agency (KBRA) releases a comment on MB
Financial, Inc.
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KBRA views the proposed merger favorably for creditors; both MB
Financial, Inc.'s (NASDAQ: MBFI), as well as Fifth Third Bancorp's
(NASDAQ: FITB; not rated). The strategic rationale for the transaction
seems clear, with the above average purchase price justified in KBRA's
view based on the quality of MBFI's franchise, financial performance
and condition.
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Key to achieving financial returns from the transaction are a
meaningful amount of projected cost savings, which, given the two
institutions' significant Chicago branch overlap, seem reasonable in
KBRA's view.
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Beyond materially strengthening FITB's Chicago market deposit share,
MBFI's attractive middle-market commercial lending and leasing
businesses, if integrated well, should benefit the combined
institution's product offerings and customer base. Positively, in this
regard, MBFI's CEO has agreed to become the CEO and Chairman of Fifth
Third Chicago, with other executives slated to join the combined
company as well.
MBFI's and MB Bank's ratings are base on KBRA's Global
Bank and Bank Holding Company Rating Methodology published on
February 19, 2016.
To view the full comment, please click here.
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About KBRA and KBRA Europe
KBRA is a full service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
recognized by the National Association of Insurance Commissioners as a
Credit Rating Provider and a certified Credit Rating Agency (CRA) by the
European Securities and Markets Authority (ESMA). Kroll Bond Rating
Agency Europe Limited is registered with ESMA as a CRA.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180522006070/en/
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