DBRS confirmed First West Credit Union's long-term issuer rating of BBB (high), as well as its short-term issuer and short-term instruments ratings at R-1 (low).
The trend on the ratings is stable.
The rating agency said the Langley, B.C.-based credit union's ratings reflect its "well-established market position through its community-based brand identities," which contribute to the successful diversification of products and services. DBRS also highlighted First West's strong earnings, which are supported by an above-average revenue per member and a higher contribution from noninterest income relative to its peers.
DBRS expressed concerns on First West's larger portion of commercial mortgages and construction and development loans compared to its peers, which makes the credit union more susceptible to an economic downturn. The rating agency also flagged concerns about elevated home prices and highly indebted customers, especially in the Greater Vancouver, B.C., area.
