Rising Delinquencies Test Resilience of Canada's Mid-Size Lenders
Morningstar DBRS reports that mortgage delinquencies are increasing at Fairstone and Equitable, while Laurentian remains resilient.
Credit pressure is building across Canada's mid-size banks as borrowers face higher renewal rates and a softer economy, despite easing borrowing costs.
“Credit pressures have continued to accelerate at Fairstone and Equitable, while Laurentian continues to demonstrate resiliency.”
The report examines Canada's rated mid-size banks, including Equitable Bank, Laurentian Bank of Canada, and Fairstone Bank of Canada, all currently rated BBB with Stable trends by Morningstar DBRS.
Author's summary: Canada's mid-size lenders face rising delinquencies.