DBRS has announced that it;
has today downgraded the rating on the Preferred Securities issued by Brookfield Soundvest Split Trust (the Trust) to Pfd-5 from Pfd-4 (low).
…
Since the last rating confirmation of the Preferred Securities at Pfd-4 (low) on March 31, 2015, the NAV of the Trust has been gradually decreasing as a consequence of declining prices of the underlying shares in the Portfolio. As of March 4, 2016, the downside protection available to the Preferred Securities is 6.6%, a change of 13.8% compared to the previous year’s 20.4% recorded on March 24, 2015. Based on the yield on the Portfolio as of March 4, 2016, the Preferred Securities distribution coverage ratio is approximately 0.5 times. The insufficient amount of Portfolio dividends to cover Preferred Security distributions is projected to create an average annual grind on the Portfolio of approximately 3.2% in the next four years.
Considering the current downside protection of 6.6%, which is subject to volatility in the value of the Portfolio and the amount of grind present on the Portfolio, DBRS has downgraded the rating on the Preferred Securities issued by Brookfield Soundvest Split Trust to Pfd-5.
BSD.PR.A was last mentioned on PrefBlog when the term was extended in March, 2015. The manager has been severely criticized on PrefBlog for suspending redemptions during the Credit Crunch and requiring notice of retraction exercise before the right to retract even existed.
This entry was posted on Monday, March 14th, 2016 at 9:19 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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BSD.PR.A Downgraded to Pfd-5 by DBRS
DBRS has announced that it;
BSD.PR.A was last mentioned on PrefBlog when the term was extended in March, 2015. The manager has been severely criticized on PrefBlog for suspending redemptions during the Credit Crunch and requiring notice of retraction exercise before the right to retract even existed.
This entry was posted on Monday, March 14th, 2016 at 9:19 pm 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.