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 |
No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.
Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.
To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.
S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.
Any Passwords/user IDs issued by S&P to users are single user-dedicated and may ONLY be used by the individual to whom they have been assigned. No sharing of passwords/user IDs and no simultaneous access via the same password/user ID is permitted. To reprint, translate, or use the data or information other than as provided herein, contact S&P Global Ratings, Client Services, 55 Water Street, New York, NY 10041; (1) 212-438-7280 or by e-mail to: research_request@spglobal.com.