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COMMENTS

Rating Component Scores For U.S., Canadian, And Bermudian Banks (December 2020)

COMMENTS

Diverse Rating Actions On European Banks Highlight The Importance Of Robust Business Models To Long-Term Resilience

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Losing LIBOR: Australia Banks On A Smooth Transition

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Commonwealth Bank of Australia's PERLS XIII Capital Notes Rated 'BBB-'


Rating Component Scores For U.S., Canadian, And Bermudian Banks (December 2020)

S&P Global Ratings' bank ratings criteria framework outlines the elements of an issuer's credit profile and how we assess these elements to determine the rating on an issuer (see tables 1-3).

We consider three basic rating components:

  • Macro-level analysis of the economic and industry factors of each country a given bank operates in, including regulatory factors. The results of these analyses contribute to our Banking Industry Country Risk Assessments (BICRAs), which underpin our "anchors" for banks operating in each country.
  • Bank-specific analysis focused on scoring factors related to a particular institution's credit profile and financial performance, including its business position, capital and earnings, risk position, and funding and liquidity. These factors, combined with the anchor, determine the bank's group stand-alone credit profile (SACP) when the entity is a banking group.
  • Analysis of the potential for external support from either a parent company or sovereign (beyond ongoing support), or additional loss-absorbing capacity. This potential support would result in an issuer credit rating above the group SACP.

Table 1

U.S.-Based Banking Institutions
Institution Operating company long-term ICR/outlook Anchor Business position Capital and earnings Risk position Funding and liquidity UGCP/SACP Type of potential support No. of notches of support Additional factor adj. Bank holding company rating

Ally Financial Inc.*

NR bbb+ Adequate (0) Adequate (0) Adequate (0) Below Average/Adequate (-1) bbb None 0 0 BBB-

American Express Co.

A-/Stable bbb+ Strong (+1) Adequate (0) Strong (+1) Below Average/Adequate (-1) a- None 0 0 BBB+

Associated Banc-Corp

BBB+/Stable bbb+ Adequate (0) Adequate (0) Adequate (0) Average/Adequate (0) bbb+ None 0 0 BBB

BancorpSouth Bank

BBB/Stable bbb+ Moderate (-1) Adequate (0) Adequate (0) Average/Adequate (0) bbb None 0 0

Bank of America Corp.

A+/Stable bbb+ Strong (+1) Adequate (0) Strong (+1) Average/Adequate (0) a ALAC 1 0 A-

The Bank of New York Mellon Corp.

AA-/Stable bbb+ Very strong (+2) Adequate (0) Strong (+1) Average/Strong (0) a+ ALAC 1 0 A

Bank of North Dakota

A+/Stable bbb+ Adequate (0) Very Strong (+2) Adequate (0) Average/Adequate (0) a GRE 1 0

Bank of the West

A/Negative bbb+ Moderate (-1) Strong (+1) Adequate (0) Average/Adequate (0) bbb+ Group 2 0

BBVA USA Bancshares Inc.

BBB+/NM§ bbb+ Moderate (-1) Strong (+1) Adequate (0) Average/Adequate (0) bbb+ None 0 0 BBB+

BMO Financial Corp.

A+/Stable bbb+ Adequate (0) Adequate (0) Adequate (0) Average/Adequate (0) bbb+ Group 3 0 A+

BOK Financial Corp.

A-/Negative bbb+ Adequate (0) Adequate (0) Strong (+1) Average/Adequate (0) a- None 0 0 BBB+

Cadence Bancorporation

BBB-/Negative bbb+ Moderate (-1) Adequate (0) Moderate (-1) Average/Adequate (0) bbb- None 0 0 BB+

Capital One Financial Corp.

BBB+/Negative bbb+ Adequate (0) Adequate (0) Adequate (0) Average/Adequate (0) bbb+ none 0 0 BBB

CIT Group Inc.

BBB-/NM§ bbb+ Moderate (-1) Strong (+1) Moderate (-1) Below Average/Adequate (-1) bbb- None 0 0 BB+

Citigroup Inc.

A+/Stable bbb+ Strong (+1) Adequate (0) Adequate (0) Average/Adequate (0) a- ALAC 2 0 BBB+

Citizens Financial Group Inc.

A-/Stable bbb+ Strong (+1) Adequate (0) Adequate (0) Average/Adequate (0) a- None 0 0 BBB+

Comerica Inc.

A-/Negative bbb+ Strong (+1) Adequate (0) Adequate (0) Average/Adequate (0) a- None 0 0 BBB+

Commerce Bancshares Inc.

A/Stable bbb+ Adequate (0) Strong (+1) Strong (+1) Above Average/Adequate (0) a None 0 0 A-

Cullen/Frost Bankers Inc.

A/Negative bbb+ Adequate (0) Strong (+1) Adequate (0) Above Average/Strong (+1) a None 0 0 A-

Discover Financial Services

BBB/Negative bbb+ Adequate (0) Adequate (0) Adequate (0) Below Average/Adequate (-1) bbb None 0 0 BBB-

East West Bancorp Inc.

BBB+/Negative bbb+ Moderate (-1) Strong (+1) Adequate (0) Average/Adequate (0) bbb+ None 0 0 BBB

F.N.B. Corp.

BBB/Stable bbb+ Moderate (-1) Adequate (0) Adequate (0) Average/Adequate (0) bbb none 0 0 BBB-

Fifth Third Bancorp

A-/Stable bbb+ Strong (+1) Adequate (0) Adequate (0) Average/Adequate (0) a- None 0 0 BBB+

First Commonwealth Financial Corp.

BBB/Stable bbb+ Moderate (-1) Adequate (0) Adequate (0) Average/Adequate (0) bbb None 0 0 BBB-

First Hawaiian Bank

A-/Negative bbb+ Moderate (-1) Strong (+1) Strong (+1) Average/Adequate (0) a- None 0 0

First Horizon Corp. (Unsolicited)

BBB/Stable bbb+ Moderate (-1) Adequate (0) Adequate (0) Average/Adequate (0) bbb None 0 0 BBB-

First Midwest Bancorp Inc.

BBB/Stable bbb+ Moderate (-1) Adequate (0) Adequate (0) Average/Adequate (0) bbb None 0 0 BBB-

First Republic Bank

A-/Stable bbb+ Adequate (0) Strong (+1) Adequate (0) Average/Adequate (0) a- None 0 0

FirstBank Puerto Rico

BB-/Stable bbb+ Weak (-3) Strong (+1) Weak (-2) Below Average/Adequate (-1) bb- None 0 0

The Goldman Sachs Group Inc.

A+/Stable bbb+ Strong (+1) Adequate (0) Moderate (-1) Average/Adequate (0) bbb+ ALAC 2 1 BBB+

Hancock Whitney Corp.

BBB+/Negative bbb+ Adequate (0) Adequate (0) Adequate (0) Average/Adequate (0) bbb+ None 0 0 BBB

HSBC USA Inc.

A+/Stable bbb+ Adequate (0) Strong (+1) Moderate (-1) Average/Adequate (0) bbb+ Group 3 0 A-

Huntington Bancshares Inc.

A-/Negative bbb+ Strong (+1) Adequate (0) Adequate (0) Average/Adequate (0) a- None 0 0 BBB+

Investors Bancorp Inc.

BBB/Negative bbb+ Moderate (-1) Strong (+1) Adequate (0) Below Average/Adequate (-1) bbb None 0 0 BBB-

JPMorgan Chase & Co.

A+/Stable bbb+ Very strong (+2) Adequate (0) Adequate (0) Average/Adequate (0) a ALAC 1 0 A-

KeyCorp

A-/Stable bbb+ Adequate (0) Adequate (0) Strong (+1) Average/Adequate (0) a- None 0 0 BBB+

M&T Bank Corp.

A/Negative bbb+ Strong (+1) Adequate (0) Strong (+1) Average/Adequate (0) a None 0 0 A-

Morgan Stanley

A+/Stable bbb+ Strong (+1) Strong (+1) Moderate (-1) Average/Adequate (0) a- ALAC 2 0 BBB+

MUFG Americas Holdings Corp.

A/Stable bbb+ Adequate (0) Strong (+1) Adequate (0) Average/Adequate (0) a- Group 1 0 A-

New York Community Bancorp Inc.

BBB-/Negative bbb+ Moderate (-1) Adequate (0) Adequate (0) Below Average/Adequate (-1) bbb- None 0 0 BB+

Northern Trust Corp.

AA-/Stable bbb+ Very strong (+2) Adequate (0) Very Strong (+2) Average/Strong (0) aa- None 0 0 A+

OFG Bancorp

BB-/Stable bbb+ Weak (-3) Strong (+1) Weak (-2) Below Average/Adequate (-1) bb- None 0 0 B

People's United Financial Inc.

A-/Negative bbb+ Adequate (0) Adequate (0) Strong (+1) Average/Adequate (0) a- None 0 0 BBB+

The PNC Financial Services Group Inc.

A/Stable bbb+ Strong (+1) Adequate (0) Strong (+1) Average/Adequate (0) a None 0 0 A-

Popular Inc.

BB+/Stable bbb+ Moderate (-1) Adequate (0) Weak (-2) Average/Adequate (0) bb+ None 0 0 BB-

Regions Financial Corp.

A-/Stable bbb+ Strong (+1) Adequate (0) Adequate (0) Average/Adequate (0) a- None 0 0 BBB+

S&T Bank

BBB/Negative bbb+ Moderate (-1) Adequate (0) Adequate (0) Average/Adequate (0) bbb None 0 0

Santander Holdings USA Inc.

A-/Negative bbb+ Moderate (-1) Strong (+1) Weak (-2) Average/Adequate (0) bbb- Group 3 0 BBB+

SLM Corp.

BBB-/Negative bbb+ Moderate (-1) Adequate (0) Adequate (0) Below Average/Adequate (-1) bbb- None 0 0 BB+

State Street Corp.

AA-/Stable bbb+ Very strong (+2) Adequate (0) Strong (+1) Average/Strong (0) a+ ALAC 1 0 A

SVB Financial Group

BBB+/Stable bbb+ Moderate (-1) Strong (+1) Adequate (0) Average/Adequate (0) bbb+ None 0 0 BBB

Synchrony Financial

BBB/Negative bbb+ Adequate (0) Adequate (0) Adequate (0) Below Average/Adequate (-1) bbb None 0 0 BBB-

Synovus Financial Corp.

BBB/Negative bbb+ Moderate (-1) Adequate (0) Adequate (0) Average/Adequate (0) bbb None 0 0 BBB-

TCF Financial Corp.

BBB/NM§ bbb+ Moderate (-1) Adequate (0) Adequate (0) Average/Adequate (0) bbb None 0 0 BBB-

Texas Capital Bancshares Inc.

BBB-/Stable bbb+ Moderate (-1) Adequate (0) Adequate (0) Below Average/Adequate (-1) bbb- None 0 0 BB+

Truist Financial Corp.

A/Stable bbb+ Strong (+1) Adequate (0) Strong (+1) Average/Adequate (0) a None 0 0 A-

Trustmark Corp.

BBB+/Negative bbb+ Moderate (-1) Strong (+1) Adequate (0) Average/Adequate (0) bbb+ None 0 0 BBB

U.S. Bancorp

AA-/Stable bbb+ Very strong (+2) Adequate (0) Strong (+1) Average/Adequate (0) a+ None 0 1 A+

UMB Financial Corp.

A/Negative bbb+ Adequate (0) Strong (+1) Strong (+1) Average/Adequate (0) a None 0 0 A-

Umpqua Holdings Corp.

BBB/Stable bbb+ Moderate (-1) Adequate (0) Adequate (0) Average/Adequate (0) bbb None 0 0 BBB-

Valley National Bancorp

BBB+/Negative bbb+ Adequate (0) Adequate (0) Adequate (0) Average/Adequate (0) bbb+ None 0 0 BBB

Webster Financial Corp.

BBB+/Stable bbb+ Adequate (0) Adequate (0) Adequate (0) Average/Adequate (0) bbb+ None 0 0 BBB

Wells Fargo & Co.

A+/Stable bbb+ Strong (+1) Adequate (0) Adequate (0) Average/Adequate (0) a- ALAC 2 0 BBB+

Zions Bancorporation N.A.

BBB+/Negative bbb+ Adequate (0) Strong (+1) Moderate (-1) Average/Adequate (0) bbb+ None 0 0
Note: Data as of Dec. 31, 2020. *The outlook on Ally Financial is negative. §The ratings are on CreditWatch with positive implications. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Sys. imp.--Systemically important. GRE--Government-related entity. ALAC--Additional loss-absorbing capacity. Adj--Adjustments. NR--Not rated.

Table 2

Canada-Based Banking Institutions
Institution Operating company long-term ICR/outlook Anchor Business position Capital and earnings Risk position Funding and liquidity UGCP/SACP Type of potential support No. of notches of support Additional factor adjustments

Bank of Montreal

A+/Stable a- Adequate (0) Adequate (0) Strong (+1) Average/Adequate (0) a Sys. imp. 1 0

The Bank of Nova Scotia

A+/Stable bbb+ Strong (+1) Adequate (0) Strong (+1) Average/Adequate (0) a Sys. imp. 1 0

Canadian Imperial Bank of Commerce

A+/Stable a- Adequate (0) Adequate (0) Adequate (0) Average/Adequate (0) a- Sys. imp. 2 0

Fédération des caisses Desjardins du Québec

A+/Stable a- Adequate (0) Strong (+1) Adequate (0) Average/Adequate (0) a Sys. imp. 1 0

Home Capital Group Inc.*

BB-/Stable a- Weak (-3) Very Strong (+2) Weak (-2) Below Average/Adequate (-1) bb+ None 0 0

HSBC Bank Canada

A+/Stable a- Moderate (-1) Adequate (0) Adequate (0) Average/Adequate (0) bbb+ Group 3 0

Laurentian Bank of Canada

BBB/Negative a- Weak (-2) Adequate (0) Adequate (0) Average/Adequate (0) bbb None 0 0

Manulife Bank of Canada

A+/Stable a- Weak (-2) Very Strong (+2) Moderate (-1) Above Average/Adequate (0) bbb+ Group 3 0

National Bank of Canada

A/Stable a- Adequate (0) Adequate (0) Adequate (0) Average/Adequate (0) a- Sys. imp. 1 0

Royal Bank of Canada

AA-/Stable a- Strong (+1) Adequate (0) Strong (+1) Average/Adequate (0) a+ Sys. imp. 1 0

The Toronto-Dominion Bank

AA-/Stable a- Strong (+1) Adequate (0) Strong (+1) Average/Adequate (0) a+ Sys. imp. 1 0
Note: Data as of Dec. 31, 2020. *Home Trust Co., the principal subsidiary of Home Capital Group Inc., has a long-term issuer credit rating (ICR) of 'BB+'. SACP--Stand-alone credit profile. Gov't--Government support.

Table 3

Bermuda-Based Banking Institutions
Institution Operating company long-term ICR/outlook Anchor Business position Capital and earnings Risk position Funding and liquidity UGCP/SACP Type of potential support No. of notches of support Additional factor adjustments

The Bank of N.T. Butterfield & Son Ltd.

BBB+/Stable bbb- Adequate (0) Adequate (0) Strong (+1) Average/Adequate (0) bbb Sys. imp. 1 0

HSBC Bank Bermuda Ltd.

A-/Stable bbb- Adequate (0) Very Strong (+2) Weak (-2) Average/Strong (0) bbb- Group 3 0
Note: Data as of Dec. 31, 2020. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Sys. imp.--Systemically important.

This report does not constitute a rating action.

Primary Credit Analyst:E.Robert Hansen, CFA, New York + 1 (212) 438 7402;
robert.hansen@spglobal.com
Contributor:Jason Zhang, New York

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