Fitch Affirms Bank of Hawaii Corporation’s IDR at ‘A-’; Outlook Stable

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NEW YORK–(BUSINESS WIRE)–Reflecting the strength of its strong local franchise and solid credit fundamentals, Fitch Ratings has affirmed the ratings of Bank of Hawaii Corporation (BOH) and its bank subsidiary, Bank of Hawaii. The Rating Outlook is Stable. A complete list of ratings follows at the end of this release.

Having benefited from a healthy local economy, BOH has thrived as a Hawaii focused company, generating strong relative performance and maintaining good asset quality. The company’s extensive branch network in the deposit rich Hawaii market provides the company with a solid core funding base. Further, BOH’s capital and reserve positions are sound. However, although the company has benefited to date, BOH’s geographic concentration, as well as certain higher risk exposures in the company’s portfolio are limiting rating factors.

The Stable Rating Outlook considers that the company’s conservative risk management is expected to limit the level of credit problems arising from its geographically concentrated loan portfolio in the face of the slowing Hawaii economy, which has lagged the general recession on the U.S. mainland and globally. Moreover, concerns regarding the slowing local economy and expected credit quality deterioration are tempered by the company’s sound capital and reserve positions, which should protect the company in a more severe downturn in the Hawaii economy. As such, Fitch expects BOH to maintain its healthy capital base.

Fitch affirms the following ratings with a Stable Outlook:

Bank of Hawaii Corporation

–Long-term Issuer Default Rating (IDR) at ‘A-’;

–Short-term IDR at ‘F1′,

–Individual at ‘B’;

–Support at ’5′,

–Support Floor at ‘NF’

Bank of Hawaii

–Long-term IDR at ‘A-’;

–Short-term IDR at ‘F1′;

–Long-term deposits at ‘A’;

–Short-term deposits at ‘F1′;

–Individual at ‘B’;

–Support at ’5′;

–Support Floor at ‘NF’.

Fitch’s rating definitions and the terms of use of such ratings are available on the agency’s public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch’s code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the ‘Code of Conduct’ section of this site.