DBRS Comments on Cancellation of Central 1 / Alberta Central Merger Discussions

Earlier today Central 1 Credit Union (Central 1) and Credit Union Central Alberta Ltd. (CUCA) announced they have discontinued merger discussions.This announcement has no impact on the DBRS rating for either Central 1 (senior debt rating of A (high) and short-term rating of R-1 (middle)) or CUCA (senior debt rating of “A” and short-term rating of R-1 (low)).

After exploring the potential for a combination, the organizations have decided to focus on other priorities at this time.They have indicated they will, however, continue to explore whether opportunities to collaborate exist that will bring greater benefits to credit unions in Ontario, Alberta and British Columbia.

Notes:
The applicable methodologies are Canadian Credit Union Methodology (April 2011), Global Methodology for Rating Banks and Banking Organizations (January 2010) and Enhanced Methodology for Bank Ratings – Intrinsic and Support Assessments (February 2009), which can be found on our website under Methodologies