Fitch gives Raymond James notes BBB+

Fitch Ratings said it gave a BBB+ rating to Raymond James Financial Inc.'s recently assumed 5.75% fixed-to-floating rate subordinated notes due 2030 and a BB+ rating to its recently issued series A and series B non-cumulative perpetual preferred stock.

On June 1, 2022, Raymond James completed its previously announced acquisition of TriState Capital Holdings, Inc. As part of the acquisition, all outstanding TriState non-cumulative perpetual preferred shares were converted into newly created RJF fixed-to-floating non-cumulative perpetual preferred stock. Additionally, as part of the merger, RJF assumed TriState Capital's outstanding subordinated debt.

“The subordinated debt is notched one level below RJF's viability rating (VR) for loss severity. In accordance with Fitch's bank rating criteria, this reflects alternative notching from the base case of two notches due to Fitch's view of U.S. regulators' resolution alternatives for an entity like RJF, as well as early intervention options available to banking regulators under U.S. law,” the agency said.

Additionally, the preferred rating follows Fitch’s standard notching of four notches below the VR, the agency said.

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