Moody's Investors Service affirmed Bank of N.T. Butterfield & Son Ltd.'s baa2 baseline credit assessment; A3 long-term issuer, deposit and subordinated debt; A2(cr)/Prime-1(cr) counterparty risk assessments; and A2/Prime-1 counterparty risk ratings.
The ratings outlook was changed to positive from stable.
The affirmation reflects the rating agency's "unchanged assessment" of Butterfield's stand-alone credit profile, support and structural analysis. The rating agency also noted Butterfield's increasing capital levels, which has strengthened the bank's ability to withstand unexpected losses.
The outlook change was due to improvement in Butterfield's loan portfolio, which is a result of recovery in Bermuda's economy after a prolonged recession. Butterfield's initiatives to expand its portfolio outside Bermuda to both the Channel Islands and Cayman Islands have also been accounted for by the rating agency.
