Printer Friendly

Fitch Ratings affirms Federation Des Caisses Desjardins Du Quebec's bonds at 'AAA'.

New York: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, affirmed Federation Des Caisses Desjardins Du Quebec's (FCDQ; rated 'AA-'/'F1+'/Stable Outlook) CAD4.4 billion equivalent legislative mortgage covered bonds at 'AAA'/ Stable Outlook.

The 'AAA' credit loss has decreased to 7.2% from 8.2%, reflecting the reduction of the sustainable market value decline in Quebec, where 100% of the cover pool is located. The lower than peers' sustainable loan-to-value ratio and debt to income ratio results in a lower credit loss of FCDQ's cover pool.

The programme's IDR uplift is unchanged at zero notches since the Canadian bank bail-in rules, if finalized, are not applicable to FCDQ. Should FCDQ be subject to a similar set of bail-in rules set by its provincial regulator, the agency will reassess the IDR uplift. The unchanged PCU of six notches reflects the 12-months liquidity protection in place allowed by the 12-month maturity extension applying to the soft bullet bonds and a dynamic reserve to cover three-month senior expenses and interest payments, which will be funded when FCDQ is rated below 'A' or 'F1'.

COPYRIGHT 2018 Plus Media Solutions
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2018 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Daily the Pak Banker (Lahore, Pakistan)
Geographic Code:1CQUE
Date:May 3, 2018
Previous Article:Fitch Ratings to upgrade rating assigned to City of Houston notes.
Next Article:Fitch Ratings upgrades Leucadia National Corporation's IDR to 'BBB'.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters |