Desjardins Group: Rating Report

On July 15, 2021, DBRS Morningstar confirmed the ratings of Desjardins and the Fédération des caisses Desjardins du Québec’s (FCDQ) Long-Term Issuer Ratings at AA and Short-Term Issuer Ratings at R-1 (high). DBRS Morningstar also confirmed the Long-Term Senior Debt rating for Capital Desjardins Inc. at A (high). The trends on all ratings are Stable. Desjardins’ rating is composed of an Intrinsic Assessment of AA (low) and a Support Assessment of SA2, which is based on the expectation that the Government of Canada (rated AAA with a Stable trend by DBRS Morningstar) would assist the Province of Québec (Québec; rated AA (low) with a Stable trend by DBRS Morningstar) in providing support to Desjardins, which has been designated as a domestic systemically important financial institution in Québec. The SA2 designation results in a one-notch uplift to the Long-Term Issuer Rating, resulting in a final rating of AA.