Fitch Affirms Butterfield’s Issuer Default Ratings; Raises Viability Rating
Hamilton, Bermuda–11 June 2013: The Bank of N.T. Butterfield & Son Limited (“Butterfield” or the “Bank”) announced that credit rating agency Fitch has today affirmed Butterfield’s long-term Issuer Default Rating (“IDR”) at A- and retained its stable outlook. Fitch also upgraded the Bank’s stand-alone Viability Rating (“VR”) to bbb- from bb+. The overall rating of A- is consistent with the equivalent ratings of the other two major rating agencies.
Explaining the increase in Butterfield’s VR, the Fitch report noted Butterfield’s strong market position, liquid balance sheet, good capital levels, and diversified revenue stream (with fee based revenues representing almost 40% of total revenues).
The above rating affirmations and changes follow Fitch’s downgrade of Bermuda on 7 June 2013. Butterfield’s IDR and outlook were unaffected by that downgrade.
Brendan McDonagh, Butterfield’s Chairman & Chief Executive Officer, said, “It is pleasing that Fitch has
recognised the strength of Butterfield’s balance sheet in affirming the Bank’s credit ratings and raising its
Viability Rating. This reflects the intrinsic creditworthiness of the Bank and the effectiveness of our current risk management, financial management and corporate governance approach.”
Complete details regarding the outcome of Fitch’s Rating Committee review of Butterfield are available in the Fitch release dated 11 June 2013.