S&P puts Bank of the West on positive watch

S&P said it placed the Bank of the West’s A rating on CreditWatch with positive implications.

The placement follows the Bank of Montreal and its subsidiary BMO Harris Bank NA reporting it agreed to acquire the bank from its parent BNP Paribas for $16.3 billion in cash. BMO expects the acquisition to close by year-end 2022.

“The CreditWatch positive placement reflects our expectation that we will likely equalize our ratings on Bank of the West with those on BMO Harris Bank once the acquisition closes. Specifically, we would likely raise the long-term issuer credit rating by one notch at closing to equalize it with that of BMO Harris Bank. Our ratings on BMO and its core subsidiaries, including BMO Harris Bank, benefit from a notch of government support that incorporates our opinion of the systemic importance of the bank in Canada,” the agency said in a press release.

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