Fitch Ratings is affirming and simultaneously withdrawing
Fitch is also affirming and withdrawing all other ratings, including the Shareholder Support Rating (SSR) of 'a+' and Short-Term IDR of 'F1+'. At the time of withdrawal, the Outlook was Negative, which is underpinned by
Fitch has chosen to withdraw BMOC's ratings for commercial reasons.
Key Rating Drivers
Ratings at Country Ceiling: BMOC's Long-Term IDR is the same as
Shareholder Support-Driven IDR; Strategically Important: BMOC's Long-Term IDR is underpinned by strong institutional support from the ultimate parent,
BMOC is wholly owned by BMO, which has significant influence over the subsidiary's operations, risk management and strategy. Fitch expects BMOC to continue to function as a base for BMO's APAC operations. It plays a key role in facilitating cross-border transactions, particularly for investment and trade between
Short-Term IDR: BMOC's Short-Term IDR is at the higher of two possible ratings that map to the Long-Term IDR, as we believe the parent's propensity to provide support is more certain in the near term.
No VR Assigned: Fitch did not assign a VR to BMOC at the time of withdrawal, as its intrinsic strength is subject to operational and financial support from its parent and it lacks a meaningful standalone franchise.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
Not applicable as the ratings have been withdrawn.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
Not applicable as the ratings have been withdrawn.
Sources of Information
The principal sources of information used in the analysis are described in the Applicable Criteria.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Public Ratings with Credit Linkage to other ratings
BMOC's IDRs are linked to the VR of its parent, BMO.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Following the withdrawal of ratings, Fitch will no longer provide the associated ESG Relevance Scores for BMOC. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
(C) 2024 Electronic News Publishing, source