KBRA Initiates Ratings for WaFd
KBRA has assigned ratings to WaFd, Inc. (WAFD) and its bank subsidiary, Washington Federal Bank. The ratings include a BBB+ senior unsecured debt rating, BBB subordinated debt rating, and BBB- preferred shares rating for WaFd, Inc. Washington Federal Bank received A- deposit and senior unsecured debt ratings and a BBB+ subordinated debt rating. All long-term ratings have a stable outlook.
KBRA believes WaFd's credit risks are lower than average, citing outperformance of its residential mortgage and multifamily portfolios. The company's exposure to the troubled office sector is at 4% of loans. CEO Brent Beardall expressed satisfaction with the ratings, viewing them as recognition of WaFd's strong financial foundation and sound risk management practices.
KBRA ha assegnato valutazioni a WaFd, Inc. (WAFD) e alla sua controllata bancaria, Washington Federal Bank. Le valutazioni includono un rating BBB+ per il debito senior non garantito, rating BBB per il debito subordinato e rating BBB- per le azioni privilegiate di WaFd, Inc. Washington Federal Bank ha ricevuto valutazioni A- per i depositi e il debito senior non garantito e un rating BBB+ per il debito subordinato. Tutti i rating a lungo termine hanno un prospettiva stabile.
KBRA ritiene che i rischi creditizi di WaFd siano inferiori alla media, citando la sovraperformance dei suoi portafogli di mutui residenziali e immobili multifamiliari. L'esposizione dell'azienda al settore degli uffici in difficoltà è pari al 4% dei prestiti. Il CEO Brent Beardall ha espresso soddisfazione per i rating, considerandoli un riconoscimento della solida base finanziaria di WaFd e delle sane pratiche di gestione dei rischi.
KBRA ha asignado calificaciones a WaFd, Inc. (WAFD) y a su filial bancaria, Washington Federal Bank. Las calificaciones incluyen una calificación BBB+ para la deuda senior no asegurada, calificación BBB para la deuda subordinada y calificación BBB- para las acciones preferentes de WaFd, Inc. Washington Federal Bank recibió calificaciones A- para depósitos y deuda senior no asegurada y una calificación BBB+ para deuda subordinada. Todas las calificaciones a largo plazo tienen un perspectiva estable.
KBRA considera que los riesgos crediticios de WaFd son inferiores a la media, citando un rendimiento superior de sus carteras de hipotecas residenciales y multifamiliares. La exposición de la empresa al sector de oficinas en problemas es del 4% de los préstamos. El CEO Brent Beardall expresó satisfacción con las calificaciones, viéndolas como un reconocimiento de la sólida base financiera de WaFd y de las prácticas de gestión de riesgos bien fundamentadas.
KBRA는 WaFd, Inc. (WAFD)와 그 은행 자회사인 Washington Federal Bank에 대한 신용 평가를 진행했습니다. 평가에는 BBB+의 선순위 무담보 부채 등급, BBB의 후순위 부채 등급, BBB-의 우선주 등급이 포함됩니다. Washington Federal Bank는 A-의 예금 및 선순위 무담보 부채 등급과 BBB+의 후순위 부채 등급을 받았습니다. 모든 장기 등급은 안정적인 전망을 가지고 있습니다.
KBRA는 WaFd의 신용 위험이 평균 이하라고 믿으며, 주거용 모기지 및 다가구 포트폴리오의 성과를 언급했습니다. 회사의 문제 있는 사무실 섹터에 대한 노출은 대출의 4%입니다. CEO인 브렌트 비어달(Brent Beardall)은 이러한 평가에 만족감을 표하며, 이를 WaFd의 강력한 재무 기반과 건전한 위험 관리 관행에 대한 인식으로 간주했습니다.
KBRA a attribué des notations à WaFd, Inc. (WAFD) et à sa filiale bancaire, Washington Federal Bank. Les notations incluent un rating BBB+ pour la dette senior non sécurisée, un rating BBB pour la dette subordonnée et un rating BBB- pour les actions privilégiées de WaFd, Inc. Washington Federal Bank a reçu des notations A- pour les dépôts et la dette senior non sécurisée ainsi qu'un rating BBB+ pour la dette subordonnée. Tous les ratings à long terme ont une perspective stable.
KBRA considère que les risques de crédit de WaFd sont inférieurs à la moyenne, citant la surperformance de ses portefeuilles de prêts hypothécaires résidentiels et multifamiliaux. L'exposition de l'entreprise au secteur des bureaux en difficulté est de 4 % des prêts. Le PDG Brent Beardall a exprimé sa satisfaction vis-à-vis des notations, les considérant comme une reconnaissance de la solide base financière de WaFd et des pratiques de gestion des risques appropriées.
KBRA hat WaFd, Inc. (WAFD) und deren Banktochtergesellschaft, Washington Federal Bank, bewertet. Die Bewertungen umfassen ein BBB+ für unbesicherte vorrangige Schulden, ein BBB für nachrangige Schulden und ein BBB- für Vorzugsaktien von WaFd, Inc. Washington Federal Bank erhielt A- für Einlagen und unbesicherte vorrangige Schulden sowie ein BBB+ für nachrangige Schulden. Alle langfristigen Bewertungen haben einen stabilen Ausblick.
KBRA glaubt, dass die Kreditrisiken von WaFd unter dem Durchschnitt liegen und verweist auf die Überdurchschnittliche Leistung der Wohnungsbaudarlehen und der Mehrfamilienhaus-Portfolios. Die Exposition des Unternehmens gegenüber dem belasteten Bürosektor liegt bei 4 % der Darlehen. CEO Brent Beardall äußerte Zufriedenheit mit den Bewertungen und sieht sie als Anerkennung der soliden finanziellen Basis von WaFd und der fundierten Risikomanagementpraktiken.
- KBRA assigned BBB+ senior unsecured debt rating and stable outlook for long-term ratings
- Credit risks assessed as lower than average by KBRA
- Residential mortgage and multifamily portfolios outperforming similarly sized peers
- Conservative loan-to-value ratios in residential mortgage and multifamily portfolios
- exposure (4% of loans) to troubled office sector
- None.
Insights
KBRA's initiation of ratings for WaFd, Inc. and its subsidiary bank is a positive development for the company. The assigned ratings, particularly the BBB+ for senior unsecured debt and A- for deposit and senior unsecured debt of WaFd Bank, indicate a solid financial position. These ratings suggest lower-than-average credit risks, which is important for investor confidence.
The stable outlook for long-term ratings is reassuring, reflecting KBRA's confidence in WaFd's consistent performance and risk management. The company's conservative loan portfolio, particularly in residential mortgages and multifamily properties, with low LTVs, positions it well in the current market. The exposure to the troubled office sector (
For investors, these ratings could potentially lead to lower borrowing costs and improved access to capital markets, which could support future growth initiatives.
WaFd's portfolio composition is noteworthy from a real estate perspective. The outperformance of residential mortgage and multifamily portfolios compared to peers is a strong indicator of the company's prudent lending practices and market positioning. The conservative LTVs in these portfolios provide a buffer against potential market downturns.
The mention of lack of affordable housing in WaFd's footprint is a double-edged sword. While it supports the company's portfolio performance, it also highlights potential social and economic challenges in their markets. This could present both opportunities and risks for WaFd in the long term.
The exposure to the office sector, focusing on smaller suburban properties, is a strategic advantage given the current challenges in commercial real estate. This approach may shield WaFd from significant downside risks associated with urban office spaces post-pandemic.
KBRA believes WaFd's credit risks remain lower than average as its residential mortgage and multifamily portfolios have outperformed similarly sized peers over a prolonged period. The current construction of these portfolios include conservative LTVs, and combined with the lack of affordable housing in a majority of the footprint, should facilitate continued outperformance for the company. Lastly, exposure to the troubled office sector is well-contained at just
President and CEO, Brent Beardall is satisfied with these ratings stating, "We are pleased with KBRA's recognition of WaFd, Inc. and Washington Federal Bank's strong financial foundation and sound risk management practices. The assignment of these ratings, including the BBB+ rating for our senior unsecured debt and the stable outlook for our long-term ratings, reflects the consistent and prudent approach we take in managing our balance sheet, serving our clients, and driving sustainable growth. These ratings affirm the trust and confidence that our stakeholders, including customers, investors, and employees, place in us. We remain committed to maintaining our financial strength and delivering value to all our stakeholders as we continue to execute our strategic objectives."
About WaFd Bank:
WaFd, Inc. is the parent company of Washington Federal Bank, a federally insured
View source version on businesswire.com: https://www.businesswire.com/news/home/20240822922369/en/
Brad Goode
WaFd, Inc.
425 Pike Street,
Brad.Goode@wafd.com
(206) 626-8178
Source: Washington Federal Bank
FAQ
What ratings did KBRA assign to WaFd, Inc. (WAFD)?
What is the outlook for WaFd's (WAFD) long-term ratings?
How does KBRA view WaFd's (WAFD) credit risks?
What is WaFd's (WAFD) exposure to the troubled office sector?
