Kroll Bond Rating Agency Assigns Senior Unsecured Long-Term and Short-Term Debt Ratings to Flagstar Bancorp, Inc.

Kroll Bond Rating Agency (KBRA) has assigned senior unsecured and subordinated debt ratings to Troy, Michigan based Flagstar Bancorp, Inc., (NYSE: FBC) (“Flagstar”), and its subsidiary bank, Flagstar Bank, FSB based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on January 28, 2015. The outlook on all long-term ratings is stable.

KBRA’s senior unsecured debt rating of BBB and subordinated debt rating of BBB- for Flagstar Bancorp, Inc. are supported by marked improvements in asset quality, healthy capital levels, and a return to profitability. The ratings are also reflective of the institution’s diversified revenue streams and position as a top tier mortgage originator. Moreover, Flagstar has recently completed a de-risking initiative, bolstering risk governance and enhancing risk management considerably. The ratings are constrained by Flagstar’s historical performance during the financial downturn, the high concentration in residential mortgages and the regulatory orders under which the Thrift still operates.

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

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