Bulletin: Bank of Montreal's Announced GECC Truck Loan Portfolio Acquisition Does Not Affect Ratings

TORONTO (Standard&Poor's) Sept. 11, 2015--Standard&Poor's Ratings Services said today that Bank of Montreal's (BMO; A+/Negative/A-1) announced agreement to acquire a portfolio of truck loan receivables and leases from General Electric Capital Corp. (GECC) will not affect its ratings or outlook on the bank. BMO announced the planned acquisition of approximately C$11.5 billion in net earning assets (expected to increase by approximately C$1 billion prior to closing), which will increase the bank's gross loans by almost 4%. BMO Harris Bank will acquire the U.S. assets and related operations, which constitute about 90% of the agreed transaction. The remaining 10% of the portfolio is Canadian, and will be acquired by BMO itself. The acquisition is expected to close

...TORONTO (Standard & Poor's) Sept. 11, 2015--Standard & Poor's Ratings Services said today that Bank of Montreal's (BMO; A+/Negative/A-1) announced agreement to acquire a portfolio of truck loan receivables and leases from General Electric Capital Corp. (GECC) will not affect its ratings or outlook on the bank. BMO announced the planned acquisition of approximately C$11.5 billion in net earning assets (expected to increase by approximately C$1 billion prior to closing), which will increase the bank's gross loans by almost 4%. BMO Harris Bank will acquire the U.S. assets and related operations, which constitute about 90% of the agreed transaction. The remaining 10% of the portfolio is Canadian, and will be acquired by BMO itself. The acquisition is expected to close late in 2015. The announced acquisition builds on BMO's focus in the commercial lending space in Canada and the U.S., and provides the Canadian and U.S. franchises with sectoral expertise, new client relationships, and collateral...

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