DBRS Releases Report on Credit Union Central Alberta

DBRS has today released a report on Credit Union Central Alberta (Central) that provides further detail on the recent confirmation of Central’s ratings at “A” and R-1 (low) with Stable trends.

The confirmation reflects the low-risk business and strong financial risk profile of the Alberta Credit Union System (the System). While the assessment of the System provides the starting point for Central’s rating, there are no material deficiencies at Central that would negatively affect the rating relative to the assessment of the System; while profitability is limited, earnings are not a material rating factor for a credit union central. Central’s asset quality and financial risk profile metrics remain acceptable.

Under DBRS’s global rating methodology for banks and bank-like financial institutions, Central’s senior long-term debt rating, at “A”, is composed of its intrinsic assessment of A (low) and its support assessment of SA2 (reflecting the expectation of systemic and timely external support by the government of Alberta). The SA2 assessment results in a one-notch rating benefit to the intrinsic assessment.

Today’s report and the May 19, 2011, press release are available at www.dbrs.com.