DBRS Assigns a Long-Term Senior Debt Rating of A (low) with a Stable Trend to Concentra Bank

DBRS Limited (DBRS) assigned Concentra Bank (Concentra or the Bank) a Long-Term Senior Debt rating of A (low) with a Stable trend. Concentra’s Long-Term Issuer Rating of A (low) and Short-Term Issuer Rating of R-1 (low), both with a Stable trend, were confirmed on September 27, 2018, and are unchanged.

Concentra’s Support Assessment of SA1 reflects the Credit Union Central of Saskatchewan’s (SaskCentral: rated R-1 (low) with a Stable trend by DBRS) willingness and ability to support Concentra, which is 84% owned by SaskCentral.

KEY RATING CONSIDERATIONS
The Long-Term Senior Debt rating is rated in line with Concentra’s Long-Term Issuer Rating of A (low), as per DBRS’s “Global Methodology for Rating Banks and Banking Organisations.”

RATING DRIVERS
Though unlikely over the intermediate term, positive rating pressure could arise as a result of positive developments in the ratings of SaskCentral. Conversely, a reduction in SaskCentral’s ratings would negatively impact Concentra’s ratings. A significant increase in Concentra’s risk profile due to greater exposure to higher risk assets at the Bank and its increased reliance on funding that is external to the System could also negatively impact ratings by increasing contingent risk for SaskCentral. Excessive reliance on activities that do not provide direct and meaningful benefits to credit unions could lead to a reduction in DBRS’s assessment of the willingness and ability of SaskCentral to support Concentra.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrs.com.

The principal methodology is Global Methodology for Rating Banks and Banking Organisations (July 2018), which can be found on dbrs.com under Methodologies.

Lead Analyst: Sohail Ahmer, Vice President, Canadian Financial Institutions Group
Rating Committee Chair: Michael Driscoll, Managing Director, Head of NA FIG, Global FIG

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

For more information on this credit or on this industry, visit www.dbrs.com.