DBRS Morningstar Comments on Management Changes at Desjardins Group

DBRS Limited (DBRS Morningstar) notes that on December 3, 2019, Desjardins Group (Desjardins or the Group; rated AA with a Stable trend by DBRS Morningstar) announced several senior management changes in response to the data breach reported in June 2019 (see the DBRS Morningstar press releases titled “DBRS Comments on Unauthorized Access of Desjardins Group Member Data” and “DBRS Morningstar Comments on Desjardins Group’s Update on the Unauthorized Access of Member Data”). There is no ratings impact stemming from this announcement, as DBRS Morningstar views the breadth and depth of Desjardins’ management team as capable of moving the Group forward from the fallout from the data breach.

Desjardins announced the departure of its Chief Operating Officer (COO) and its Chief Information Officer (CIO), both of whom reached mutual agreements with Desjardins Group to end their employments. The COO role will be filled by the Group’s Chief Financial Officer (CFO), Réal Bellemare, while Alain Leprohon, another highly qualified member of the Finance team, will take over the role of CFO. Additionally, Bellemare will serve as the interim CIO until a permanent replacement is found. DBRS Morningstar recognizes that certain key initiatives related to modernization and technology enhancements could face minor delays until a new CIO is in place.

Notes:
For more information on this credit or on this industry, visit www.dbrs.com.

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada