Fitch Affirms Butterfield Bank’s Ratings
The Bank of N.T. Butterfield & Son Limited announced that credit rating agency Fitch has affirmed Butterfield’s long-term Issuer Default Rating (IDR) at A-, its short-term IDR at F1 and Viability Rating at bb+.
The Viability Rating, which represents Fitch’s view as to the intrinsic creditworthiness of an issuer, was placed on Watch Positive due to Butterfield’s “overall improving financial profile.” Fitch notes in their press release that Butterfield’s Viability Rating “reflects its strong market position, liquid balance sheet, good capital levels, and diversified revenue stream.”
Brendan McDonagh, Butterfield’s Chairman & Chief Executive Officer, said, “We are pleased that Fitch has affirmed the Bank’s credit ratings and taken note of our improving profitability and risk management profile. It was also pleasing to read that Fitch views our lending and wealth management growth strategies positively.”
The Fitch release notes the agency’s positive views of Butterfield’s reduction of non-performing loans, which have decreased by 37% since 2009. As of 30 September 2012, Butterfield had a Tier 1 Capital Ratio of 18.3% and a Total Capital Ratio of 23.8%. Complete details regarding the outcome of Fitch’s Rating Committee review of Butterfield are available in the Fitch Release dated 14 December 2012.
