RBS.PR.B Upgraded to Pfd-2 by DBRS

DBRS has announced that it:

has today upgraded the rating of the Class B Preferred Shares, Series 1 (the Preferred Shares), issued by R Split III Corp. (the Company) to Pfd-2 from Pfd-2 (low). Approximately 1.23 million Preferred Shares were issued at $13.60 each on May 31, 2012, following the redemption of the Class A Preferred Shares in accordance with their original terms as part of a share capital reorganization. The final redemption date for the Preferred Shares is May 31, 2017.

The net proceeds from the issuance of the Preferred Shares were used by the Company to purchase common shares (the Portfolio) of Royal Bank of Canada (RBC; rated AA, Stable by DBRS).

Downside protection available to holders of the Preferred Shares increased to 68.8% as of September 12, 2013, compared to 66.3% on April 18, 2013. In addition, RBC raised its dividends on August 29, 2013, increasing quarterly distributions by four cents to 67 cents per share. This dividend boost increases the Preferred Share distribution coverage ratio to 2.6 times (up from 2.3 times in April 2013). The upgrade of the rating of the Preferred Shares is based primarily on the increasing level of downside protection available and the improved distribution coverage ratio.

RBS.PR.B is not tracked by HIMIPref™ – too small! It was last mentioned on PrefBlog when the offering was completed in May, 2012.

Leave a Reply

You must be logged in to post a comment.