Royal Bank of Canada's acquisition of RBTT Financial Holdings has given the regional company a boost in rankings from Fitch.

The new RBC Financial (Caribbean) Limited's individual default rating has been upgraded to 'A+' from 'BBB-', reflecting, said Fitch, "the institutional support from the new, strongly rated parent."

But it also takes into account the sovereign risk associated with Trinidad & Tobago, a Caricom country with a oil and gas based economy in the process of diversifying beyond energy.

Stable outlook

Fitch said its outlook on the new RBC Caribbean was stable.

Royal Bank, which carries a 'AA/F1+ rating from Fitch, completed its US$2.2 billion acquisition of RBTT on June 16 and is in the process of amalgamating its Caribbean operations with that of RBTT's under the umbrella of RBC Caribbean, headquartered in Port of Spain.

The transaction creates a 130 branch network valued at US$13.7 billion in assets spread across 18 country markets.

RBC is itself a well diversified company, said Fitch, with C$627.5 billion in assets as of April 30, 2008.

business@gleanerjm.com