DBRS has announced that it:
has today downgraded the rating of the Preferred Shares issued by World Financial Split Corp. (the Company) to Pfd-4 (low) from Pfd-4 (high). The rating has been removed from Under Review with Negative Implications, where it was placed on August 12, 2010.
…
The NAV and the dividend income of the Portfolio have declined significantly over the past few years because of the high Portfolio concentration in global financial institutions. The Portfolio does not generate enough income to cover the Preferred Share distributions; however, less than one year remains until the termination of the Company, mitigating the negative impact of the shortfall.
On August 12, 2010, DBRS placed the rating of the Preferred Shares Under Review with Negative Implications, noting that the resolution of the Under Review status would depend on the performance of the Portfolio during August and September. The NAV of the Company generally continued to fluctuate between $11 and $11.50, a significant decline from earlier in 2010. As of September 30, 2010, the NAV of the Company was $11.25, providing downside protection of approximately 11% to the Preferred Shares. As a result of the decreased protection available to the Preferred Shares, the rating has been downgraded to Pfd-4 (low) from Pfd-4 (high).
The final redemption date for both classes of shares issued is June 30, 2011
WFS.PR.A was last mentioned on PrefBlog when it was placed on review-negative by DBRS. WFS.PR.A is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.
This entry was posted on Wednesday, October 13th, 2010 at 6:37 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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WFS.PR.A Downgraded to Pfd-4(low) by DBRS
DBRS has announced that it:
WFS.PR.A was last mentioned on PrefBlog when it was placed on review-negative by DBRS. WFS.PR.A is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.
This entry was posted on Wednesday, October 13th, 2010 at 6:37 pm 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.