DBRS Morningstar has assigned a Long-Term Issuer Rating of BBB (high) to Innovation Federal Credit Union and confirms Short-Term Credit Ratings at R-1 (low) with stable trends. The short-term debt rating scale provides an opinion on the risk an issuer will not meet its short-term financial obligations in a timely manner.  R-1 (low) indicates good credit quality and that the capacity for the payment of short-term obligations as they fall due is substantial. 

A long-term credit rating provides an opinion on the risk of default.  This is the Credit Union’s first long-term rating. A rating of BBB (high) indicates adequate credit quality with the capacity for the payment of financial obligations being acceptable.

“Having a reputable global credit rating agency, such as DBRS Morningstar, recognize Innovation’s financial strength in addition to our member benefits is truly reaffirming,” says Innovation CFO Sheldon Hess. “We look forward to the continued growth opportunities being a federal credit union brings and finding new ways to continue to reward both our members and our communities.”

DBRS Morningstar has vast financial industry knowledge, specifically on the Canadian credit union system. The agency assesses overall credit union strength based on five distinct building blocks which are franchise, earnings, risk, funding and liquidity, and capitalization.

For further details on the credit rating, visit DBRS’s website: www.dbrsmorningstar.com.