Frequently Asked Questions

Kroll Bond Ratings assigns ratings on a scale from "A+" to "E." The meaning of each rating is described below.

• A+ / A An institution that has an exceptional financial condition. These rating are the highest level of financial soundness.
• B+ An institution with an overall strong financial condition. The company is most likely to meet its credit obligations under severe economic, financial and business conditions.
• B An institution with an adequate financial condition that is likely to meet its credit obligations under severe economic, financial and business conditions.
• B- / C+ An institution with an adequate financial condition but is more susceptible to adverse changes in economic conditions that could affect its ability to meet its credit obligations. C+ is the lowest investment grade rating.
• C / C- An institution whose financial condition is judged to be relatively weak and its ability to meet financial obligations could be affected by adverse economic, financial or business conditions. Non-investment grade.
• D / E Institutions are likely to have financial problems. These institutions are likely to have a higher probability of failure than institutions with higher ratings. Non-investment grade.

• KBRA Ratings are based on a subjective and objective review of four main determinants, Liquidity, Asset quality, Capital adequacy, and Earnings.
• Asset quality and capital adequacy are typically the highest weighted determinants with additional weight being applied to the remaining two determinants during exceptional circumstances.
• Kroll Bond Ratings gathers most of its banking data from call report data submitted to the FDIC, the OTS, and the NCUA.
• Additional information such as guarantees, regulatory actions, and other factors are also considered when assigning ratings.
• All ratings are reviewed and approved by KBRA's team of analysts.

• Kroll Bond Ratings updates its domestic bank, thrift, and credit union, bank holding company, foreign bank, and corporate ratings every quarter, at a minimum.
• Ratings for banks, thrifts, and credit unions are typically posted 65 to 75 days after the end of each quarter.
• Bank holding company ratings are posted approximately 105 days after the end of each quarter.
• Foreign bank ratings are updated periodically based on the availability of data.
• Corporate ratings are updated quarterly as data is available.
• Title insurance ratings and limits are updated quartely.

Kroll Bond Ratings Agency (KBRA) has a listing for every FDIC insured bank and savings and loan and every natural-person credit union. If the banking institution you are looking for is still in business, KBRA rates it. If you are having difficulty finding a specific bank the following points may be helpful.

• KBRA often abbreviates bank names. E.g. "BK" stands for bank, "ST" stands for state, "B&TC" stands for bank and trust company, etc.
• Search by city: cities listed are the banks’ headquarters or city of incorporation. Kroll Bond Ratings does not list banks by their branch location.
• Spacing matters. For example, “Bank United” is not the same as “BankUnited.”
• Banks frequently merge and acquire other banks and numerous banks have failed in the last year. Check the NIC website to make sure that the bank you are looking for is still operating.

• “NB” stands for new bank. Kroll Bond Ratings does not issue standard ratings for new banks until they have been in business for three years.
• “NT” stands for new thrift – a savings & loan that is too new to be rated.
  
• “NR” stands for not rated. Kroll Bond Ratings may issue an “NR” rating if a banking institution is atypical or if its reported financials are incomplete or suspect.

• Kroll Ratings are used by Fannie Mae, Freddie Mac, major retailers, insurance companies, various state treasurers, and numerous other government entities and private sector institutions.

• Credit unions are either natural-person credit unions or corporate credit unions. Natural-person credit unions are those that serve individuals while corporate credit unions provide liquidity to natural-person credit unions. Kroll Bond Ratings’s website does not currently include corporate credit unions.

• High numbers are better than low numbers for all ratios except asset quality. For example if a bank’s capital ratio ranks in the 5th percentile, 95 percent of the banks in its peer group have higher capital ratios.

• The title insurance ratings can be obtained by contacting our sales department.

• Claims-Paying Ability ratings are equivalent to financial strength ratings while Commercial Capacity limits are Kroll Bond Ratings’ opinion of the maximum self-supported policy a title insurance underwriter can write.