Fitch Ratings has upgraded the long-term issuer default ratings of Independent Bank Corp. (INDB) and its bank subsidiary Rockland Trust Co. to ‘BBB’ from ‘BBB-‘.

Fitch’s rating action reflects the company’s consistent financial performance amidst a difficult operating environment, though INDB’s New England markets have not had the same level of volatility seen nationally, according to a statement.

The company’s ratings and its financial performance are underpinned by its good asset quality over an extended period, which have kept credit costs low. A healthy net interest margin (NIM) has also contributed to its consistent earnings. INDB’s good core funding base and healthy liquidity position provide additional ratings support.

According to Fitch, the company has a concentration in commercial real estate (CRE); approximately 42 percent of total assets, and given the more stable geography of its markets, relatively granular portfolio, and disciplined underwriting in its portfolio, Fitch expects credit stress in this portfolio to remain at manageable levels. Fitch applied specific stresses to this portfolio and has incorporated this into the rating action.

"INDB also possesses a concentration in home equity (approximately 17 percent of total loans), which Fitch views as a higher risk asset class. However, INDB’s home equity portfolio continues to perform well," according to the rating report.