NEW YORK, NY–Kroll Bond Rating Agency (KBRA) has assigned a senior unsecured debt rating of BBB, subordinated debt rating of BBB-, and short-term debt rating of K3 to Bridgewater Bancshares, Inc. (“Bridgewater”), a bank holding company headquartered in Bloomington, Minnesota. In addition, KBRA has assigned deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2 to the subsidiary bank, Bridgewater Bank. The Outlook for the long-term ratings is Stable.
The ratings are supported by the Bank’s strong efficiency and earnings metrics, healthy asset quality, and a solid capital position. The ratings are constrained by a spread-reliant revenue stream, high concentration in non-owner occupied commercial real estate, large reliance on noncore funding, and a compact geographic footprint.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016.