Kroll Bond Rating Agency Assigns Senior Unsecured Debt Rating of BBB+ & Short-Term Rating of K2 to Meta Financial Group, Inc.

Kroll Bond Rating Agency (KBRA) has assigned a senior unsecured debt rating of BBB+, subordinated debt rating of BBB, and short-term debt rating of K2 for Sioux Falls, South Dakota based Meta Financial Group, Inc. (NASDAQ:CASH) (“the Company”). Moreover, KBRA has assigned deposit rating and senior unsecured debt ratings of A- and short term debt and deposit ratings of K2 for the lead subsidiary, Meta Bank (“the Bank”). The outlook on all long-term ratings is stable.

The ratings are supported by Meta’s robust liquidity profile with stable and predictable funding base, solid asset quality metrics, and strong risk-weighted regulatory capital ratios. Moreover, the ratings are underpinned by the Company’s diversified earnings streams with growing noninterest revenue and position as a leading prepaid card issuer. The ratings are constrained by below peer full-year 2015 earnings metrics, relatively small and geographically concentrated retail banking operations, and concentrated customer base in payments business.

The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on January 28, 2015. The ratings, which support a KBRA structured finance transaction, were not solicited by CBA, and the Bank did not participate in the rating process.

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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