Moody’s assigns ‘A3’ deposit rating to Berkshire Bank for the first time

Gives a positive Outlook rating

BOSTON, July 13, 2022 /PRNewswire/ — Berkshire Hills Bancorp, Inc. (“Berkshire Hills” or the “Company”) (NYSE: BHLB), the parent company of Berkshire Bank (the “Bank”), announced that Moody’s Investors Service (“Moody’s ), in a Rating Action report dated June 21, 2022, assigned ratings to Berkshire Hills and the Bank for the first time. Moody’s has assigned the Bank a long-term deposit rating of “A3”. In addition, Moody’s has assigned the Bank and the Company a long-term investment grade issuer rating of “Baa3”. The rating outlook is “Positive” for both the Company and the Bank.*

According to Moody’s report, the ratings reflect “the company’s strong balance sheet characterized by strong capitalization and strong deposit funding and liquidity, as well as a relatively new business strategy, which is being executed.” Moody’s expects “over the next 12 to 18 months, Berkshire Hills’ profitability performance will improve as it continues to execute its strategic transformation plan known as BEST which was launched in 2021”. Moody’s considers Berkshire Hills’ risk appetite to be “conservative and the refined composition of its loan portfolio should support strong asset quality performance.”

Berkshire Chief Financial Officer Subhadeep Basu said, “Moody’s recognized our strong financial position, improving profitability and asset quality, and our prudent risk appetite. They noted that we are positioned for improved profitability thanks to higher interest rates and strategic changes to our balance sheet. We are pleased to have received an A3 Long Term Bank Deposit Rating and Investment Grade Issuer Rating with a positive outlook which also includes our targeted improvement in operational efficiency through the continued execution of our plan. strategic transformation plan.”

In addition, Moody’s has assigned a Baa3 investment rating to the $100 million issuance of sustainable bonds by Berkshire on June 30, 2022. Berkshire is the first American community bank holding company to issue a bond dedicated to supporting social and environmental projects. In addition to Moody’s rating, Sustainalytics, a Morningstar company and the global leader in high-quality ESG research, ratings and data, has independently verified that from Berkshire The Sustainable Finance Framework “is credible and impactful and aligns with the International Capital Markets Association (ICMA) Sustainable Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2021”**

“Moody’s ratings and the second-party opinion of our Sustainable Finance Framework from Sustainalytics further underscore from Berkshire a unique back story and support the progress we are making towards our vision to be a socially responsible and successful community bank in New England and beyond,” added the Berkshire CEO. Nitin Mhatre.

ON BERKSHIRE HILLS BANCORP

Berkshire Hills Bancorp is the parent company of Berkshire Bank. The Bank’s goal is to be a high-performing, socially responsible community bank in New England, Upstate New York and beyond. Berkshire Bank provides corporate and personal banking, mortgages, wealth management and investments.

Based at Boston, Berkshire at about $12.1 billion in assets and operates 105 branches in New England and New York, and is a member of the Bloomberg Gender-Equality Index. To learn more, call 800-773-5601 or follow us on Facebook, TwitterInstagram and LinkedIn.

FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these statements from the use of the words “may”, “will”, “should”, “could”, “would”, “plan”, “potential”, “estimate”, “project”, ” believe, “intend”, “anticipate”, “expect”, “target” and similar expressions. Many factors could cause actual results to differ materially from the expectations described in the forward-looking statements. For a discussion of these factors, please see from Berkshire the most recent reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission and available on the SEC’s website at www.sec.gov. You should not place undue reliance on forward-looking statements, which reflect our expectations only as of the date of this release. Berkshire assumes no obligation to update forward-looking statements.

Note on scoring

* A rating is not investment or financial advice and is not a recommendation to buy, sell or hold any securities. Ratings may be revised or withdrawn at any time by the rating agency that assigns them. Each rating agency has its own methodology for assigning ratings and therefore each rating should be assessed independently of any other rating.

Note regarding the opinion of the second part

** Sustainalytics second party opinion is provided for informational purposes only and does not constitute an endorsement of any security, product or project, does not constitute investment or financial advice, and does not represent any type credit or security rating or an assessment of the issuer’s economic performance, financial obligations or creditworthiness.

CONTACTS

Investor Relations Contacts:
Kevin ConnSVP, Investor Relations and Corporate Development
E-mail: [email protected]
Tel: (617) 641-9206

David GonciCapital Markets Director
E-mail: [email protected] Tel: (413) 281-1973

Media Contact:
Gary LevantSVP, Corporate Responsibility and Communications
E-mail: [email protected]
Tel: (413) 447-1737

SOURCE Berkshire Hills Bancorp, Inc.

About Mary Moser

Check Also

Tips for buying a house during the holidays | Immovable

The holidays are a unique time to buy a house. Sellers are scarce, the weather …