On March 16 GMP Capital announced:
In light of the ongoing COVID-19 outbreak and recent market volatility, the Company, RFGL and the two elected investment advisor representatives on the board of Richardson GMP no longer expect that the definitive agreement concerning the Potential RGMP Transaction will be entered into in the time period initially anticipated and, therefore, the special meeting of common shareholders called for April 21, 2020 has been postponed. The parties are continuing to work toward entering into a definitive agreement and remain hopeful that they will do so in the future.
And now DBRS announced that:
DBRS Limited (DBRS Morningstar) maintained its Under Review with Developing Implications status on GMP Capital Inc.’s (GMP or the Company) Cumulative Preferred Shares rating of Pfd-4 (high). DBRS Morningstar initially put GMP’s rating Under Review with Developing Implications on June 18, 2019, following the Company’s announcement that it had agreed to sell substantially all of its capital markets business to Stifel Financial Corp. DBRS Morningstar first maintained its Under Review status on September 18, 2019, as the sale transaction had yet to close, then again on December 17, 2019, as the Company was still in discussions with Richardson Financial Group Limited (RFGL) to consolidate full ownership of Richardson GMP Limited (Richardson GMP).
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KEY RATING CONSIDERATIONS
The continued Under Review period considers that the consolidation of GMP with Richardson GMP has yet to be finalized. DBRS Morningstar will assess GMP’s pro forma structure once it consolidates full ownership of Richardson GMP. This assessment will review the Company’s assets and liabilities composition, ownership, future strategic direction, and management’s ability to execute on this plan.
GMP was downgraded to Pfd-4(high) by DBRS in 2016. It was put on Review-Developing in June, 2019 and the review was extended in September, 2019 and again in December, 2019.
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GMP.PR.B & GMP.PR.C : Still on Review-Developing at DBRS
On March 16 GMP Capital announced:
And now DBRS announced that:
GMP was downgraded to Pfd-4(high) by DBRS in 2016. It was put on Review-Developing in June, 2019 and the review was extended in September, 2019 and again in December, 2019.
This entry was posted on Thursday, March 19th, 2020 at 12:13 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.