Credit ratings agency Fitch has taken note of Butterfield Bank’s “overall improving financial profile” in affirming the bank’s ratings.Fitch affirmed Butterfield’s long-term Issuer Default Rating (IDR) at A-, its short-term IDR at F1 and Viability Rating at bb+.The Viability Rating, which represents Fitch’s view as to the intrinsic creditworthiness of an issuer, was placed on “Watch Positive”.Fitch notes in their its release that Butterfield’s Viability Rating “reflects its strong market position, liquid balance sheet, good capital levels, and diversified revenue stream”.The agency remarks that these strengths are “offset by significant product concentration in residential lending, geographic concentration in Bermuda and large exposures in its commercial loan portfolio”.Fitch adds: “Fitch believes BNTB has returned to a sustainable level of profitability after being recapitalised in 2010 following significant losses in its investment securities portfolio.“Management has taken multiple strategic initiatives since the recapitalisation, including improvements in its risk management profile, and more recently shifting its growth focus on expansion in the UK and Guernsey. Fitch positively views the growth strategy, which is targeted at lending, as well as fee-based products particularly in private wealth and trust services, and considers BNTB’s risk management culture to be strong.”Brendan McDonagh, Butterfield’s chairman and chief executive officer, said: “We are pleased that Fitch has affirmed the Bank’s credit ratings and taken note of our improving profitability and risk management profile. It was also pleasing to read that Fitch views our lending and wealth management growth strategies positively.”The Fitch release notes the agency’s positive views of Butterfield’s reduction of non-performing loans, which have decreased by 37 percent since 2009.On this point, Fitch stated: “Although BNTB continues to face asset quality pressures, specifically in its residential loan portfolio, Fitch expects net losses to remain manageable.“Fitch notes despite BNTB’s non-performing assets (NPAs; inclusive of accruing troubled debt restructurings and foreclosed real estate) remain high at 5.06 percent as of September 30, 2012, annualised net charge-offs through the third quarter of 2012 remain relatively low at 18 basis points (bps). Fitch also positively views a reduction in non-performing loans, which have experienced a 37 percent decrease since 2009.As of 30 September 2012, Butterfield had a tier one capital ratio of 18.3 percent and a total capital ratio of 23.8 percent.