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VersaBank Receives Investment Grade Credit Ratings: "A" Overall and "A-" Sub-Debt Ratings Transform Low-Cost Deposit Opportunities
VersaBank Receives Investment Grade Credit Ratings: "A" Overall and "A-" Sub-Debt Ratings...
About this update from Versabank
[{"type":"text","content":"\n \n \n \n VersaBank Receives Investment Grade Credit Ratings: \"A\" Overall and \"A-\" Sub-Debt Ratings Transform Low-Cost Deposit Opportunities\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n LONDON, ON,\n \n April 7, 2021\n \n /CNW/ - VersaBank (\"VersaBank\" or the \"Bank\") (TSX: VB), a leader in digital banking and cyber security solutions, today announced that it has received the following investment-grade credit ratings from Egan-Jones Ratings Company, a US Nationally Recognized Statistical Rating Organization (NRSRO) and US National Association of Insurance Commissioners (NAIC)-recognized Credit Rating Provider:\n \n \n \n \n \n \n \n \n \n \n \"A\" rating for the Bank overall; and,\n \n \n \"A-\" rating for the current subordinated debt issue up to\n \n US$100 million\n \n .\n \n \n \n VersaBank's overall \"A\" credit rating is comparable to that of several of the \"Big Six\" Canadian Schedule I Banks.\n \n \n \"This is a truly transformational event for VersaBank that will significantly expand our universe of depositors and open up a new, low-risk lending channel, providing the opportunity to further accelerate our growth by means that were not previously available to us,\" said\n \n David Taylor\n \n , President and Chief Executive Officer, VersaBank.  \"Moreover, the Bank's investment-grade ratings are an external affirmation of our low-risk digital banking model, which is a fundamental component of our ability to drive earnings growth and shareholder value.\"\n \n \n \"Importantly, the \"A-\" investment-grade rating for VersaBank's subordinated debt provides the Bank with a new option for significantly lower-cost, non-dilutive, tax efficient capital that was previously not available to us to fuel our growth – especially beneficial during this current period of record loan growth.  These new ratings are especially valuable as we explore the potential to launch our innovative digital banking services in new geographic markets beyond\n \n Canada\n \n , where we see significant unmet needs si...