LANGLEY, B.C. – DBRS Limited (DBRS Morningstar) has confirmed a Long-Term Issuer Rating of BBB (high) and both a Short-Term Issuer Rating and a Short-Term Instruments Rating of R-1 (low) for First West Credit Union, noting that the trend on all ratings is Stable.
The ratings reflect First West’s position as the third-largest credit union in B.C. and the fifth-largest in Canada, with total assets and assets under management of $17.4 billion as at June 30, 2022. They also indicate the credit union’s well-established market position and diversified product suite through its community-based regional brands, Envision Financial, Valley First, Enderby and District Financial and Island Savings. Notably, the report highlights First West’s strong earnings power, as well as solid liquidity and capital positions. The Credit Union has generated solid recurring earnings that are underpinned by a higher contribution from non-interest income compared with its credit union peers.
Importantly, the ratings also mention the continued economic disruption caused by the COVID-19 pandemic and First West’s desire to grow and gain access to markets beyond B.C. by becoming federally regulated.
“As we continue to navigate one of the more difficult economic periods in recent memory, we are encouraged that First West’s financial strength and stability continue to put us in a position to garner strong credit ratings,” says Mark Moreland, Chief Financial Officer at First West Credit Union. “Our membership can be assured by this rating and know that as we continue to work towards becoming a federally regulated credit union, First West will remain focused on leveraging our solid financial position to create a stronger and more sustainable future for our members and communities.”
For more information on this rating, visit: https://www.dbrsmorningstar.com/research/403073/dbrs-morningstar-confirms-rating-on-first-west-credit-union-at-bbb-high-stable-trend