DBRS has announced a slew of upgrades to the credit rating of bank preferreds:
| Issuer | Industry | Debt Rated | Action | Rating | Trend |
| Bank of Montreal | Banks & Trusts | Cumulative Preferred Shares | Upgraded | Pfd-1 | Stb |
| Scotia Mortgage Investment Corporation | Banks & Trusts | Non-Cumulative Preferred Shares Series A (bsd. on BNS) | Upgraded | Pfd-1 | Stb |
| National Bank of Canada | Banks & Trusts | Cumulative Preferred Shares | Upgraded | Pfd-1 (low) | Stb |
| TD Mortgage Investment Corporation | Banks & Trusts | Higher Yielding Bank Related Securities (bsd. on TD Bank) | Upgraded | Pfd-1 | Stb |
| Royal Bank of Canada | Banks & Trusts | Non-Cumulative Preferred Shares | Upgraded | Pfd-1 | Stb |
| Bank of Nova Scotia | Banks & Trusts | Cumulative Preferred Shares | Upgraded | Pfd-1 | Stb |
| Bank of Nova Scotia | Banks & Trusts | Non-Cumulative Preferred Shares | Upgraded | Pfd-1 | Stb |
| Canadian Imperial Bank of Commerce | Banks & Trusts | Cumulative Preferred Shares | Upgraded | Pfd-1 (low) | Stb |
Well! This creates an exercise in data-entry, doesn’t it? I won’t be able to get these done tonight, although I will update prices as normal. I will update this post once the upgrades have been reflected in the HIMIPref™ database – and this will happen well before the market opens on Tuesday morning.
I don’t really anticipate much change in HIMIPref™ values as a result of this change, although I will be most interested to see if anything happens to the “Low” spread! I suspect that the most noticable change will be with CIBC issues since
- maxWeightIssuerClass2 will no longer be enforced, and
- yieldCurvePremiumCreditClass2 will no longer be applicable, which will have the effect of making them look cheaper.
Update, 2006-10-7 : The changes have been processed. There is some discussion of the effects of these changes on calculated values at Effect of Mass-Bank-Upgrade on Calculated Yield-Curve
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