Morningstar DBRS Discontinues and Withdraws Canadian Western Bank Credit Ratings

DBRS Limited (Morningstar DBRS) has today discontinued and withdrawn the credit ratings of Canadian Western Bank (CWB or the Bank) following the completion of the acquisition by National Bank of Canada (National; rated AA with a Stable trend) on February 3, 2025 and the amalgamation of two banks on March 1, 2025. The banks now continue as one under the name of National Bank of Canada, with the resulting entity assuming the obligations of its predecessors, including its outstanding NVCC subordinated debentures and senior deposit notes. Prior to discontinuation, on February 3, 2025, Morningstar DBRS equalized all CWB's credit ratings with those of National, including upgrading the Bank's Long-Term Issuer Rating to AA from A (low) and Short-Term Issuer Rating to R-1 (high) from R-1 (low), and assigned Stable trends. The Support Assessment (SA) designation of SA1 was assigned to the Bank, reflecting Morningstar DBRS' expectation of timely internal support from National.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS

There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024) https://dbrs.morningstar.com/research/437781.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodology is the Global Methodology for Rating Banks and Banking Organisations (June 04, 2024) https://dbrs.morningstar.com/research/433881. In addition Morningstar DBRS uses the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024) https://dbrs.morningstar.com/research/437781 in its consideration of ESG factors.

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found on the issuer page at dbrs.morningstar.com.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. Morningstar DBRS's trends and credit ratings are under regular surveillance.

For more information on this credit or on this industry, visit dbrs.morningstar.com.

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