DBRS changes Equitable trends to stable

DBRS said it changed the trends on Equitable Bank and parent Equitable Group Inc. to stable from negative.

“The trend change to stable reflects DBRS Morningstar’s view that the considerable uncertainties facing financial institutions, particularly those with more limited business models, because of the coronavirus disease (Covid-19) pandemic have begun to abate. At the onset, DBRS Morningstar expected the economic impact of the various lockdowns on businesses across Canada, particularly for smaller firms and entrepreneurs, many of whom represent Equitable’s core alternative-A (Alt-A) borrowers, to disrupt the group. However, unprecedented support measures put in place through monetary and fiscal stimuli have largely mitigated the negative impact of the crisis,” the agency said in a press release.

The agency also confirmed Equitable Bank’s long-term ratings, including its long-term issuer rating, at BBB and confirmed the bank’s subordinated debt rating at BBB (low). DBRS also confirmed the long-term ratings of Equitable Group at BBB (low).

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