Moody’s ups Butterfield debt, BCAs, CRAs

Moody's Investors Service said it affirmed Bank of N.T. Butterfield & Son Ltd.'s long- and short-term deposit ratings of A3 and Prime-2, respectively, and its A3 long-term issuer rating.

At the same time, the agency upgraded Butterfield's standalone and adjusted baseline credit assessments to baa2 from baa3, subordinated debt rating to A3 from Baa1 and long- and short-term counterparty risk assessments to A2(cr) and Prime-1(cr) from A3(cr) and Prime-2(cr).

The outlook is stable. These actions conclude the review for upgrade initiated on April 3.

Moody's said the upgrade of the baseline credit assessment to baa2 from baa3 reflects the bank's stronger capitalization.

The upgrade also reflects the agency’s expectation that tangible capital ratios will be sustained at strong levels even if the bank pursues growth through acquisitions.

In addition, the upgrade takes into account the bank's healthier asset quality and profitability trends, supported by Bermuda's improving economy. The bank's strong and stable funding and liquidity profile remains its key credit strength, Moody’s said.

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