DBRS Confirms Central 1 Credit Union Ratings at R-1 (middle), A (high)

DBRS has today confirmed the Short-Term Notes, Medium & Long-Term Senior Notes & Deposits, and Subordinated Debt ratings of Central 1 Credit Union (Central or Central 1) at R-1 (middle), A (high) and “A”, respectively. All trends are Stable.

The primary considerations in determining the rating are the low-risk business and strong asset quality and financial risk profiles of the British Columbia credit union system (B.C. System) and Ontario credit unions that are members of Central (Ontario Members).

Under DBRS’s global rating methodology for banks and bank-like financial institutions, Central’s Medium & Long-Term Senior Notes & Deposits rating is composed of an intrinsic assessment of “A” and a support assessment of SA2; the SA2 assessment, which reflects the anticipation of government support, through Central, for the B.C. System and the Ontario credit union members from the governments of B.C. and Ontario, respectively, results in a one-notch rating benefit to the intrinsic assessment. This support situation is somewhat unusual in that two provincial governments are the supporting entities.

Notes:
The applicable methodologies are Rating Canadian Provincial Credit Union Centrals, Credit Unions and Desjardins Group (April 2011), Global Methodology for Rating Banks and Banking Organisations (June 2012), and DBRS Criteria: Intrinsic and Support Assessments (February 2009), which can be found on DBRS’s website at www.dbrs.com.

The sources of information used for this rating include company documents. DBRS considers the quality of information available to it for the purposes of providing this rating of satisfactory quality.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

Lead Analyst: John van Boxmeer
Rating Committee Chair: Brenda Lum
Initial Rating Date: < 1980
Most Recent Rating Update: August 8, 2011