Moody’s Investors Service has concluded a review of ING Bank of Canada, deciding not to alter its ratings. The rating agency placed the firm on review for possible downgrade back on September 21, 2009.

Following Moody’s decision to confirm the ratings of parent company ING Bank NV, it also confirmed the ratings on ING Bank of Canada.

The rating firm said that it based the confirmation of the Canadian division’s bank financial strength rating (BRSR) “on the resilience of the Canadian deposit-gathering franchise through a period of stress at its parent company.” It reports that ING Bank of Canada has grown its deposit base throughout 2008 and 2009, and has shown strong financial performance through the first three quarters of 2009 with net earnings of $115 million.

The confirmation of ING Bank of Canada’s long-term and short-term deposit ratings is a consequence of the confirmation of parent bank’s BFSR, it explained. “ING Bank of Canada’s long and short-term deposits are rated one notch higher than the standalone ratings because Moody’s believes there is a high likelihood of support from its parent,” it said.

“Moody’s has in the past maintained consistency between the ratings and outlook of ING Bank of Canada and ING Bank N.V.’s BFSR. As such, ING Bank of Canada’s long and short-term deposit ratings carry a negative outlook, in alignment with the outlook on ING Bank N.V.’s BFSR,” it adds.

However, ING Bank of Canada’s BFSR carries a stable outlook, “based on the resilience of the franchise on a standalone basis”.

IE