10:12 AM EDT, 06/17/2024 (MT Newswires) -- Fitch Ratings on Friday affirmed National Bank of Canada's ( NTIOF ) long- and short-term issuer default ratings (IDRs) at "A+" and "F1", respectively. The rating outlook is stable.

Also, Fitch affirmed the bank's New York Branch's short-term issuer default rating at "F1."

On June 11, 2024, Fitch noted, National Bank announced that it will be acquiring Canadian Western Bank ( CWESF ) for C$5 billion via a share swap deal. This will expand NBC's Personal and Commercial segment outside Quebec. Fitch views the merger as complementary as it will provide NBC with larger scale and lessen its reliance on its Financial Markets segment. With $37 billion in loans, CWB increases NBC's commercial banking portfolio by approximately 52%, and is expected to be accretive on run-rate cost and funding synergies. Concurrently, NBC raised C$1 billion in equity.

Fitch noted NBC expects to maintain a common equity Tier 1 (CET1) ratio above 12.75% at close. Fitch said although it recognizes the good strategic rationale of the acquisition, it will further assess the deal's merits as it draws closer to closing as integration plans begin to be executed and greater clarity on business and cost synergies emerge. The deal is subject to CWB shareholder vote in September 2024, and customary regulatory approvals, which would mean an expected close in FY 2025.

Price: 106.14, Change: -0.29, Percent Change: -0.27