DBRS announced today that they are upgrading the Canadian Utilities Limited preferred shares Series O, T, W & X from Pfd-2 to Pfd-2(high), where they will now match the series Q, R, S, U & V.
HIMIPref™ tracks four of these issues:
| CU Issues & HIMIPref™ | ||
| Series | Symbol | Status |
| Q | CU.PR.T | Unchanged |
| R | CU.PR.V | Unchanged |
| W | CU.PR.A | Upgraded |
| X | CU.PR.B | Upgraded |
I do not anticipate much excitement to result from this upgrade. The two issues affected are high-dividend perpetuals with a short period until their YTW call. Due to the shortness of their expected term, NONE of the CU issues are eligible for purchase recommendations from HIMIPref™.
And anyway, as far as I can tell, the market isn’t putting much of a premium on “High” modifiers anyway!
The HIMIPref™ credit rating adjustment will take effect commencing October 31.