Butterfield reports Moody’s ratings change

The Bank of N.T. Butterfield & Son Limited (‘Butterfield’ or the ‘Bank’) today reports that credit rating agency Moody’s Investors Service has concluded the review it initiated on 17 March 2009 and has affirmed the Bank’s short-term customer deposit rating at Prime-1, the highest short-term rating available, indicating a superior ability for repayment of senior short-term debt obligations. Moody’s also noted that the outlook for Butterfield is stable.

The Bank’s long-term deposit and issuer ratings from Moody’s were decreased by one notch, from Aa3 to A1, which indicates that Butterfield’s long-term obligations continue to be subject to low credit risk. Additionally, Moody’s adjusted Butterfield’s bank financial strength rating to C- from C and its subordinated regular bond/debenture rating to A2 from A1.

Alan Thompson, Butterfield’s President & Chief Executive Officer, said, ‘It is significant that Moody’s has affirmed our short-term customer deposit rating at the highest possible level and established the outlook for Butterfield as stable. We enjoy a very high level of systemic support in Bermuda and we remain well positioned to serve our customers and navigate the ongoing dislocation in global financial markets. Given the current environment, Moody’s decision to reduce the Bank’s long-term ratings by one notch was not necessarily unanticipated.’

Ratings of Butterfield by other credit rating agencies remain unchanged.