LANGLEY, B.C. – DBRS Limited (Morningstar DBRS) confirmed its Long-Term Issuer Rating at BBB (high) and its Short-Term Issuer Rating at R-1 (low) for First West Credit Union, noting that the trend on all credit ratings remained Stable.
The credit ratings reflect First West’s position as the third-largest credit union in B.C. and the fifth-largest in Canada, with total assets and assets under management of $17.4 billion. DBRS also indicated that the credit ratings reflect the credit union’s well-established market position and diversified product suite through its community-based regional brands, Envision Financial, Valley First, Enderby and District Financial and Island Savings.
The report highlights First West’s strong asset quality and sound balance sheet fundamentals, including solid liquidity and capital positions. The credit ratings also consider the challenging economic environment and reflects the credit union’s ability to generate recurring earnings that are underpinned by a higher contribution from non-interest income compared with its credit union peers.
DBRS also references First West’s federal continuance efforts, noting that federal regulation would benefit the credit union by enabling greater access to prospective members, especially given the potential growth associated with having other local credit unions join its multi-brand model.
“First West continues to secure strong credit ratings that reflect our financial performance and our ability to sustain membership growth, despite the economic turbulence that we continue to experience,” says Mark Moreland, Chief Financial Officer at First West Credit Union. “Our financial performance is a reflection of the trust we’ve established with our members, and as we continue to work towards becoming a federally regulated credit union, First West will remain focused on leveraging our solid financial position to help our members and communities flourish.”
For more information on this rating, visit: https://dbrs.morningstar.com/research/420987/dbrs-morningstar-confirms-long-term-issuer-rating-on-first-west-credit-union-at-bbb-high-with-a-stable-trend