DBRS Downgrades Six More SplitShares

DBRS has announced:

has today downgraded six ratings of structured Preferred Shares issued by various split share companies. Each of these split share companies has invested in a portfolio of securities (the Portfolio) funded by issuing two classes of shares – dividend-yielding preferred shares (the Preferred Shares) and capital shares (the Capital Shares). The Preferred Shares benefit from a stable dividend yield and downside protection on their principal via the net asset value (NAV) of the Capital Shares.

Each of the Preferred Shares has experienced considerable declines in downside protection during the past few months amidst tremendous volatility in global equity markets. Due to these declines in downside protection, the previous ratings assigned to these companies are no longer appropriate. DBRS has today taken rating action on these six Preferred Shares ratings based on lower levels of downside protection being established from lower NAVs of the affected split share companies. Some of the Preferred Shares have been assigned Pfd-5 (low) ratings with a Negative trend because the NAVs of their respective split share companies must now appreciate considerably in order for the Preferred Shares to receive full principal at maturity.

Downgrades are:

DBRS Downgrades of 2009-3-5
Ticker Old
Rating
Asset
Coverage
Last
PrefBlog
Post
HIMIPref™
Index
New
Rating
YLD.PR.A Pfd-5
11/6
0.7:1
2/27
Mass Downgrade Scraps Pfd-5(low)
LFE.PR.A Pfd-2(low) 1.0+:1
2/27
Valuation SplitShare Pfd-4
DFN.PR.A Pfd-2 1.5-:1
2/27
Quadravest Begs for Calm SplitShare Pfd-3
SBN.PR.A Pfd-2(low) 1.6-:1
2/28
Issuer Bid SplitShare Pfd-3
SLS.PR.A Pfd-4(low) 0.8+:1
2/26
Mass Downgrade None Pfd-5(low)
ASC.PR.A Pfd-5 0.6+:1
2/27
Mass Downgrade Scraps Pfd-5(low)

4 Responses to “DBRS Downgrades Six More SplitShares”

  1. […] was last mentioned on PrefBlog when it was downgraded to Pfd-4 by DBRS. LFE.PR.A is tracked by HIMIPref™ but was relegated to the “Scraps” index in the […]

  2. […] was last mentioned on PrefBlog when it was downgraded to Pfd-3 by DBRS. SBN.PR.A is tracked by HIMIPref™, but has been relegated to the Scraps index on credit […]

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