Fitch Downgrades Bank of N.T. Butterfield & Son's Preferred Stock Rating

Mon Jun 2, 2014 5:10pm EDT

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(The following statement was released by the rating agency) NEW YORK, June 02 (Fitch) Fitch Ratings has downgraded Bank of N.T. Butterfield & Son Limited's (BNTB) preferred stock rating to 'A+' from 'AA-'. The rating action reflects the downgrade of Bermuda's long-term foreign currency Issuer Default Rating (IDR) to 'A+' from 'AA-' on May 30, 2014. KEY RATING DRIVERS - PREFERRED STOCK BNTB's preferred stock rating is equalized with Bermuda's foreign currency long-term IDR of 'A+', reflecting the guarantee from the government of Bermuda. The Ministry of Finance agreed to guarantee the principal and dividends on BNTB's preferred stock when it was issued in 2009. RATING SENSITIVITIES - PREFERRED STOCK BNTB's preferred stock rating is highly sensitive to any changes in the ability of the Bermuda government to fulfil its obligation. A downgrade in the sovereign rating of Bermuda would trigger a commensurate downgrade of the preferred stock. For more details on Fitch's rating action on Bermuda, please see release 'Fitch Downgrades Bermuda's Ratings to 'A+'; Outlook Stable'; May 30, 2014, available at Contact: Primary Analyst Doriana Gamboa Director +1-212-908-0865 Fitch Ratings, Inc. 33 Whitehall Street New York, NY 10004 Secondary Analyst Julie Solar Senior Director +1-312-368-5472 Committee Chairperson Christopher Wolfe Managing Director +1 212-908-0771 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: Additional information is available on ''. Applicable Criteria and Related Research: --'Global Financial Institutions Rating Criteria' (January 2014); --'Sovereign Support for Banks: Update on Position Outlined in 3Q13' (December 2013); --'Bank Support: Likely Rating Paths' (September 2013); --'The Evolving Dynamics of Support for Banks' (September 2013). Applicable Criteria and Related Research: The Evolving Dynamics of Support for Banks here Bank Support: Likely Rating Paths here Sovereign Support For Banks: Update on Position Outlined in 3Q13 here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.