DBRS Rates Sumitomo Mitsui Banking Corporation, Canada Branch’s Med. Term DN Programme at ‘A’; Pos

DBRS Ratings Limited (DBRS) has assigned a long-term rating of ‘A’, Positive trend, to the Medium Term Deposit Notes (Deposit Notes) Programme of Sumitomo Mitsui Banking Corporation, Canada Branch (SMBC Canada Branch or the Branch). The Programme is established as of August 9, 2018. Notes issued under the programme constitute deposit liabilities, are unsecured, and rank pari passu with the Branch’s other unsubordinated and unsecured liabilities. The Deposit Notes are not insured or guaranteed under the Canadian deposit insurance scheme.

DBRS rates SMBC Canada Branch’s Long-Term Senior Debt and Long-Term Deposits at ‘A’ and its Short-Term Instruments at R-1 (low), all with a Positive trend, in line with the ratings and trend of its parent, the Sumitomo Mitsui Banking Corporation.

RATING DRIVERS
There could be upward pressure on the Sumitomo Mitsui Banking Corporation’s (the Bank) issuer and senior debt ratings if 1) the sovereign rating is upgraded and uplift for systemic support is consequently incorporated into the ratings in line with the SA2 support designation; 2) the sovereign rating is upgraded and there is also a strengthening of Sumitomo Mitsui Financial Group’s (the Group) profitability and progress with the cost efficiencies being implemented across the Group, or 3) the Group’s overseas activities increase sufficiently that the proportion and quality of profits and exposures outside Japan lead to the IA being positioned higher than the sovereign rating.

Negative rating pressure could arise from a material deterioration in the Group’s asset quality indicators or funding profile as a result of the overseas expansion, or from a downgrade of the sovereign.

Notes:
All figures are in JPY unless otherwise noted.

The principal applicable methodology is the Global Methodology for Rating Banks and Banking Organisations (July 2018). This can be found can be found at: http://www.dbrs.com/about/methodologies

The sources of information used for this rating include SNL Financial and company reports. DBRS considers the information available to it for the purposes of providing this rating to be of satisfactory quality.

This rating concerns a newly issued financial instrument. This is the first DBRS rating on this financial instrument.
DBRS does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance.

Generally, the conditions that lead to the assignment of a Negative or Positive Trend are resolved within a twelve month period. DBRS’s outlooks and ratings are under regular surveillance.

For further information on DBRS historical default rates published by the European Securities and Markets Authority (“ESMA”) in a central repository, see:
http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

Ratings assigned by DBRS Ratings Limited are subject to EU and US regulations only.

Lead Analyst: Ross Abercromby, Managing Director, Global FIG
Rating Committee Chair: Michael Driscoll, Managing Director, Head of NA FIG
Initial Rating Date: July 29, 2016
Last Rating Date: January 30, 2018

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