Moody’s raises BankUnited

Moody's Investors Service said it upgraded BankUnited, Inc.’s long-term senior unsecured and subordinated debt ratings to Baa2 from Baa3. The agency also revised the outlook to stable from under review.

This rating action concludes the review for upgrade started on Aug. 25, Moody’s said.

The upgrade reflects BankUnited's reduced asset risk concentration, commercial real estate and its strengthened core deposit funding base, the agency noted.

“These credit positive improvements resulted in Moody's making a more favorable assessment of BankUnited's asset risk and funding profile, two key rating drivers. Moreover, Moody's expects these improvements will be sustained, although BankUnited's deposit costs may still climb faster than those of other U.S. regional banks in a rising interest rate environment, but not as rapidly as they might have had its deposit base not been transformed,” the agency said in a press release.

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