Who rates banks for safety?
Q – Do you know of an organization that rates the safety of Canadian banks and credit unions? – J.-L. R.
A – The rating of bonds or preferred shares issued by banks is a measure of the safety of the underlying company. All five major banks receive a rating of AA (low) on their deposits and senior debt from the Dominion Bond Rating Service. That’s about as high a rating as a corporation can expect. The Province of Ontario, by comparison, gets a straight AA rating.