PrefBlog

Capital Power Corporation, proud issuer of CPX.PR.A, has been confirmed at Pfd-3(low) by DBRS:

DBRS has today confirmed Capital Power Corporation’s (CPC or the Company) Preferred Shares rating at Pfd-3 (low) with a Stable trend. CPC’s rating is based on the credit quality of its subsidiary, Capital Power L.P. (CPLP; rated BBB by DBRS). CPC’s rating is notched downward relative to CPLP’s rating to reflect its structural subordination to the debt obligations at CPLP.
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CPC has no debt issued at the parent level and is not expected to issue any debt in the foreseeable future. The Company has $122 million of preferred shares outstanding as of March 31, 2012. Preferred shares, as a percentage of common equity, are within the 20% threshold (defined as the percentage of preferred shares outstanding divided by total equity excluding preferreds). For the three months ended March 31, 2012, CPC distributed $1 million to its preferred shareholders and $19 million to its common shareholders ($6 and $51 million to preferred and common shareholders, respectively, in 2011).

It was an uneventful day for the Canadian preferred share market, despite all the excitement for equities: PerpetualPremiums gained 6bp, FixedResets were flat and DeemedRetractibles gained 8bp. Volatility was almost non-existent. Volume was above average.

This entry was posted on Tuesday, July 24th, 2012 at 11:43 pm and is filed under Market Action. 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.