Moody’s assigns First Merchants Baa1

Moody’s Investors Service said it assigned first-time issuer ratings to First Merchants Corp. and its bank subsidiary First Merchants Bank of Baa1.

Moody’s said it assesses the possible loss severity in deposits and more junior obligations to be low. However, the agency considers the potential loss severity in all other debt classes to be potentially high. As a result, the holding company and bank issuer ratings are Baa1, one notch below the baseline credit assessment, Moody’s said.

The outlooks for the bank and the holding company are stable. “The stable outlook for bank and holding company is a reflection of Moody’s view that First Merchants’ credit profile will remain stable over the next 12-18 months,” Moody’s said in a press release.

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