S&P Global Ratings on March 20 assigned Bank of Montreal Ireland PLC, Bank of Montreal's fully licensed unit, long- and short-term issuer credit ratings of A+/A-1, as the Canadian lender restructures the subsidiary into its only EU-based entity in preparation for Brexit.

Bank of Montreal is reshaping its presence in Europe as it seeks to continue to provide banking business and other financial services to customers across the European Economic Area. The restructuring will give the Irish unit passporting rights across the European Economic Area, as well as the ability to access ECB funding.

Ratings noted it views Bank of Montreal Ireland as a core strategic subsidiary of its Canadian parent, based on its full operational integration, long-standing presence within the group and strategic importance to serve EU clients after Britain exits the bloc.

Bank of Montreal Ireland was also assigned a stable outlook on its long-term rating, reflecting the agency's view that the Irish bank will remain an important subsidiary of the group, carrying out Bank of Montreal's European operations in the next two years and receiving support, if required.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.