DBRS confirms Vancouver City Savings

DBRS said it confirmed the short-term instruments rating of Vancouver City Savings Credit Union at R-1 (low).

The trend is stable.

The rating remains supported by the bank's relatively low-risk base business, which primarily focuses on providing consumer financial services with an emphasis on residential mortgage lending funded by core deposits, DBRS said.

Its rating is further strengthened by reasonable market penetration in its core market of the greater Vancouver area and southern Vancouver Island, the agency said.

The bank continues to face two key issues. A high cost structure could limit its ability to compete on price or reinvest in the business in the future, DBRS said.

And non-interest income remains an underrepresented revenue source, the agency added.

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