...IDRs Linked to Parent Ratings: Bank of the West's (BOW) Long-Term Issuer Default Rating (IDR) is support-driven and one notch below its parent, BNP Paribas (BNPP). BOW's Support Rating of `1' reflects the high probability of support from its parent. The one-notch rating differential between BNPP and BOW's IDR incorporates Fitch's view that BOW is strategically important to BNPP, though not core. Good Execution: BOW continues to execute well against the internal pretax return on notional equity target for 2020 of 12% that was set at BNPP's investor day in 2017. However, BOW's earnings and profitability remain structurally weaker than similarly sized domestic banking peers, driven by weaker interest margins and a less efficient operating model. Solid Asset Quality: BOW's asset quality continues to perform well relative to peers. In the current benign credit environment, the bank has demonstrated solid credit performance, which Fitch Ratings views as indicative of conservative underwriting...
