Research Update: Royal Bank of Canada 'AA-'/A-1+' Issuer Credit Ratings Affirmed; Outlook Is Stable Dec 11
- Language: English
- Published: December 2011
- Region: Canada
Strategic importance to Royal Bank of Canada Robust liquidity and asset-liability management practices Ongoing capital support by parent Royal Bank of Canada Extremely weak profitability Persistently high loan loss provisions Large real estate credit exposure The ratings on RBC Bank (USA) (RBC Bank) reflect our assessment of the company's strategic importance (SI) to its parent, Royal Bank of Canada (RBC; AA-/Positive/A-1+), its robust liquidity and asset-liability management (ALM) practices, and its strong capital support from its parent. Weaknesses include its extremely poor profitability, resulting from persistently high levels of loan loss provisions, and its large real estate credit exposures. RBC Bank represents RBC's key expansion platform in the U.S. from which it has been building a retail and commercial banking...
Companies mentioned in this report are:
- RBC Bank (U.S.A.)
- Royal Bank of Canada
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis