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

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

Earnings are quite acceptable for a co-operative institution and impaired loans ended 2012 at remarkably low levels. Asset quality of the Ontario and B.C. systems continue to be supportive of the current ratings.

Under DBRS’s global rating methodology for banks and bank-like financial institutions, Central’s Issuer Rating is composed of an intrinsic rating 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.

Notes:
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodologies are Rating Canadian Provincial Credit 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 under Methodologies.

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

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