Bermuda’s credit ratings downgrade by Fitch will not affect Butterfield Bank’s long-term or short-term Issuer Default Rating (IDR).Fitch said yesterday it maintains Butterfield’s ‘1’ support rating and ‘A-’ Support Floor rating based on the bank’s “systemic importance to Bermuda”.“The Bermuda government continues to demonstrate strong willingness and ability to support the bank, and has previously demonstrated this support by contractually guaranteeing the principal and interest on BNTB’s outstanding preferred stock,” the agency said in a statement. “Fitch also notes that BNTB has a significant deposit market share and maintains a traditional relationship with the local government, as it is the oldest bank on the island and one of Bermuda’s largest employers.”Fitch stated that while the rating outlook on Bermuda remains stable, any adverse change to the country’s outlook would result in an equivalent change to BNTB’s rating outlook.Fitch further notes that as Butterfield’s long-term and short-term IDRs are currently based on their Support Floor Rating, any additional negative changes to Bermuda’s rating would also likely result in a downgrade to Butterfield’s IDRs and Butterfield’s Viability Rating (VR) of ‘bb+’, which reflects the intrinsic creditworthiness of the bank, is supported by Butterfield’s liquid balance sheet, strong capital levels, diversified revenue stream and return to profitability.Butterfield Bank has total assets of just under $9 billion.