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Fitch Ratings has affirmed Central Pacific Financial Corp.’s credit rating of BBB- with a ratings outlook of stable.
CPF is the holding company for Central Pacific Bank, the fourth largest in the state.
“The affirmation of CPF’s rating and Stable Outlook reflects CPF’s solid financial performance, stable deposit franchise and solid position in the unique market in the state of Hawaii,” Fitch said in the report that came out Friday.
Fitch said Central Pacific Financial’s underwriting standards and risk controls are appropriate for the current score of BBB-. The ratings agency said the company’s credit performance remained solid throughout 2022 and into the first quarter of this year, with impaired loans — those unlikely to be fully collected — to gross loans continuing to be well below expectations.
Fitch’s credit rating scale uses the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade) with an additional +/- for AA through CCC levels indicating relative differences of probability of default or recovery.
Credit ratings are indications of the likelihood of repayment in accordance with the terms of the issuance.
Standard & Poor’s and Moody’s Investors Service are the other ratings agencies.
Central Pacific releases its second-quarter financial results Wednesday.