Fitch rates Dime Community debt BBB-

Fitch Ratings said it assigned an expected rating of BBB-(EXP) to Dime Community Bancshares, Inc.'s upcoming issuance of $115 million fixed-to-floating subordinated debt issuance due June 15, 2027.

Net proceeds will be used to call the entire $70.7 million aggregate principal amount of outstanding junior subordinated notes and underlying trust preferred securities that currently pay a 7% annual coupon. The remaining proceeds are to be used for general corporate purposes.

Fitch affirmed Dime Community’s long-term issuer default rating and viability rating at BBB and bbb, respectively, in March.

The notes will be subordinated in right of payment to the payment of Dime Community’s existing and future debt including deposit liabilities, future issuances of senior debt and other general creditors, the agency explained. The notes will however rank senior to the banks existing junior subordinated debentures underlying the outstanding trust preferred securities.

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