DBRS has announced that it:
has today downgraded the rating of the Preferred Shares issued by Brompton Lifeco Split Corp. (the Company) to Pfd-5 (high) from Pfd-4 (low).
In April 2007, the Company issued 3.1 million Preferred Shares (at $10 each), along with an equal number of Class A Shares (at $15 each). The termination date for both classes of shares issued is April 30, 2014.
Not the best timing ever to start a lifeco SplitShare Corporation!
On March 20, 2012, DBRS downgraded the ratings of the Preferred Shares to Pfd-4 (low) from Pfd-4 (high), due to the considerable drop in downside protection available to holders of the Preferred Shares. Since the rating downgrade, the NAV of the Company has been volatile, causing downside protection to fluctuate widely between -4.9% and 18.3%. The downside protection available to the Preferred Shares was 8.2% as of October 11, 2012, and the current Preferred Shares distribution coverage ratio is approximately 0.7 times. As a result of the downside protection falling and remaining below acceptable levels for a prolonged period, along with the insufficient distribution coverage ratio on the Portfolio, the rating has been further downgraded to Pfd-5 (high).
LCS.PR.A was last mentioned on PrefBlog when it was downgraded to Pfd-4(low) by DBRS. LCS.PR.A is not tracked by HIMIPref™ – not only is the Asset Coverage very low, but there are less than 2-million units outstanding.
This entry was posted on Friday, October 26th, 2012 at 1:42 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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LCS.PR.A Downgraded to Pfd-5(high) by DBRS
DBRS has announced that it:
Not the best timing ever to start a lifeco SplitShare Corporation!
LCS.PR.A was last mentioned on PrefBlog when it was downgraded to Pfd-4(low) by DBRS. LCS.PR.A is not tracked by HIMIPref™ – not only is the Asset Coverage very low, but there are less than 2-million units outstanding.
This entry was posted on Friday, October 26th, 2012 at 1:42 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.