DBRS Morningstar Assigns Preferred Stock Rating of BBB to Bank of Hawaii Corporation; Trend Stable

DBRS, Inc. (DBRS Morningstar) has assigned a Preferred Stock rating of BBB to Bank of Hawaii Corporation (BOH or the Company). The trend on the rating is Stable. DBRS Morningstar has assigned the rating equal to the Company’s Long-Term Issuer Rating of ‘A’ less three notches, which is consistent with DBRS Morningstar’s standard notching for Preferred Stock.

RATING DRIVERS
DBRS Morningstar views BOH as well placed within its rating category. Over the longer term, an upgrade of the ratings would occur if the Company can grow its fee-based businesses to further diversify its revenue generation. Conversely, a downgrade would occur from sustained asset quality deterioration combined with a prolonged negative impact on profitability.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

The Grid Summary Grades for BOH are as follows: Franchise Strength – Strong/Good; Earnings Power – Strong; Risk Profile – Strong/Good; Funding & Liquidity – Strong; Capitalization – Strong/Good.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is the Global Methodology for Rating Banks and Banking Organisations (June 8, 2020): https://www.dbrsmorningstar.com/research/362170/global-methodology-for-rating-banks-and-banking-organisations. Other applicable methodologies include DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (February 3, 2021): https://www.dbrsmorningstar.com/research/373262/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

The primary sources of information used for this rating include Company Documents and S&P Global Market Intelligence. DBRS Morningstar considers the information available to it for the purposes of providing this rating was of satisfactory quality.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar’s outlooks and ratings are under regular surveillance.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com.

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