Fitch Ratings has downgraded its support ratings for many of Canada’s banks and mortgage lenders from 2 to 1. That means that the agency believes that the banks are less likely to be supported by Ottawa or institutions if action was needed to make the bank viable. The rating scale is from 1 (high level of support expected) to 5 (support cannot be relied on). Bank of Montreal, Scotiabank, CIBC, CCD, NBC, Royal Bank
of Canada and TD do not currently incorporate any government support and are therefore ranked on their standalone strengths only Fitch says. The downgrade reflects Fitch’s view that, although there is capacity for support from state or institutions there is not the propensity.