Fitch affirms Canadian banks

Fitch Ratings said that in conjunction with its broad review of the largest banking institutions in the world, it affirmed six major Canadian banks with stable outlooks.

The agency affirmed Bank of Montreal's long-term issuer default rating at AA-, viability rating at aa-, short-term issuer default rating at F1+, senior debt at AA-, subordinated debt at A+, commercial paper at F1+, support rating at 1 and support rating floor at A-.

Fitch affirmed Bank of Nova Scotia's long-term issuer default rating at AA-, short-term issuer default rating at F1+, long-term deposits at AA-, senior debt at AA-, subordinated debt at A+, short-term debt at F1+, viability rating at aa-, support rating at 1 and support rating floor at A-.

The agency affirmed Canadian Imperial Bank of Commerce's long-term issuer default rating at AA-, viability rating at aa-, short-term issuer default rating at F1+, short-term debt at F1+, senior debt at AA-, senior market-linked securities at AA-emr, subordinated debt at A+, support rating at 1 and support rating floor at A-. Its A preferred stock rating remains on Rating Watch negative.

Fitch affirmed National Bank of Canada's long-term issuer default rating at A+, viability rating at a+, short-term rating at F1, senior debt at A+, subordinated debt at A, short-term deposits at F1, support rating at 1 and support rating floor at A-. Its A- preferred stock rating remains on Rating Watch negative.

The agency affirmed Royal Bank of Canada's long-term issuer default rating at AA, viability rating at aa, short-term issuer default rating at F1+, short-term debt at F1+, senior debt at AA, subordinated debt at AA-, market-linked securities at AAemr, support rating at 1 and support rating floor at A-.

Finally, Fitch affirmed Toronto-Dominion Bank's long-term issuer default rating at AA-, short-term issuer default rating at F1+, short-term debt at F1+, viability rating at aa-, senior debt at AA-, subordinated debt at A+, support rating at 1 and support rating floor at A-. Its A preferred stock rating remains on Rating Watch negative.

Fitch said the banks are some of the highest rated banks in its rating universe, and the agency believes the six are justifiably highly rated.

The affirmation of the banks reflects confirmation of their consistent earnings trends, favorable funding positions and sound capitalization as well as Canada's comparatively favorable economic environment and a currently stable domestic banking market, the agency said.

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