S&P has downgraded Bombardier to CCC:
- Bombardier Inc. recently announced that it had secured a commitment for a new secured term loan facility for up to US$1 billion due 2023.
- We believe the intended use of the new facility is to provide Bombardier with additional liquidity to operate its business through the COVID-19 pandemic as the company works to close previously announced divestitures.
- Based on the secured claim of the proposed term loan on certain aviation inventory and related accounts receivable, we estimate lower recovery prospects for the company’s unsecured creditors in our hypothetical default scenario.
- As a result, S&P Global Ratings lowered its issue-level rating on Bombardier’s unsecured notes to ‘CCC’ from ‘CCC+’. We revised the recovery rating to ‘5’ from ‘4’.
- All other ratings on the company are unchanged, including S&P Global Ratings’ ‘CCC+’ issuer credit rating (ICR).
The preferreds, which they downgraded to CC in March, are unaffected.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0394 % | 1,647.8 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0394 % | 3,023.6 |
| Floater | 5.07 % | 5.10 % | 66,827 | 15.32 | 3 | 0.0394 % | 1,742.5 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0057 % | 3,479.6 |
| SplitShare | 4.83 % | 4.92 % | 51,234 | 3.75 | 7 | -0.0057 % | 4,155.4 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0057 % | 3,242.2 |
| Perpetual-Premium | 5.18 % | 4.86 % | 74,492 | 4.08 | 1 | -1.2866 % | 3,078.3 |
| Perpetual-Discount | 5.54 % | 5.67 % | 79,722 | 14.38 | 35 | -0.0123 % | 3,297.2 |
| FixedReset Disc | 5.69 % | 4.57 % | 142,838 | 15.86 | 75 | -0.0406 % | 1,987.6 |
| Deemed-Retractible | 5.28 % | 5.38 % | 93,334 | 14.50 | 27 | -0.1672 % | 3,251.3 |
| FloatingReset | 2.37 % | 2.39 % | 32,062 | 1.50 | 4 | -0.1744 % | 1,763.3 |
| FixedReset Prem | 5.45 % | 4.34 % | 344,705 | 0.97 | 3 | -0.6174 % | 2,595.5 |
| FixedReset Bank Non | 1.95 % | 2.53 % | 98,611 | 1.49 | 2 | 0.0000 % | 2,828.4 |
| FixedReset Ins Non | 5.93 % | 4.66 % | 98,363 | 15.48 | 22 | -1.0716 % | 2,009.2 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| IAF.PR.G | FixedReset Ins Non | -12.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 15.95 Evaluated at bid price : 15.95 Bid-YTW : 5.17 % |
| MFC.PR.M | FixedReset Ins Non | -8.98 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 14.70 Evaluated at bid price : 14.70 Bid-YTW : 5.13 % |
| IFC.PR.A | FixedReset Ins Non | -6.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 11.75 Evaluated at bid price : 11.75 Bid-YTW : 4.87 % |
| MFC.PR.F | FixedReset Ins Non | -4.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 9.51 Evaluated at bid price : 9.51 Bid-YTW : 4.73 % |
| RY.PR.M | FixedReset Disc | -3.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 17.50 Evaluated at bid price : 17.50 Bid-YTW : 4.25 % |
| BAM.PF.G | FixedReset Disc | -2.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 14.35 Evaluated at bid price : 14.35 Bid-YTW : 5.65 % |
| BAM.PF.I | FixedReset Disc | -2.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 23.11 Evaluated at bid price : 23.50 Bid-YTW : 5.14 % |
| PWF.PR.P | FixedReset Disc | -2.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 10.20 Evaluated at bid price : 10.20 Bid-YTW : 4.82 % |
| RY.PR.N | Perpetual-Discount | -1.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 24.07 Evaluated at bid price : 24.35 Bid-YTW : 5.02 % |
| SLF.PR.J | FloatingReset | -1.57 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 9.41 Evaluated at bid price : 9.41 Bid-YTW : 4.23 % |
| RY.PR.O | Perpetual-Discount | -1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 24.05 Evaluated at bid price : 24.33 Bid-YTW : 5.02 % |
| BIP.PR.F | FixedReset Disc | -1.38 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 21.40 Evaluated at bid price : 21.40 Bid-YTW : 6.03 % |
| RY.PR.R | FixedReset Prem | -1.33 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-08-24 Maturity Price : 25.00 Evaluated at bid price : 25.20 Bid-YTW : 4.34 % |
| RY.PR.P | Perpetual-Premium | -1.29 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-02-24 Maturity Price : 25.00 Evaluated at bid price : 25.32 Bid-YTW : 4.86 % |
| BAM.PF.F | FixedReset Disc | -1.28 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 15.39 Evaluated at bid price : 15.39 Bid-YTW : 5.60 % |
| RY.PR.C | Deemed-Retractible | -1.15 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2020-08-23 Maturity Price : 25.00 Evaluated at bid price : 25.03 Bid-YTW : -1.61 % |
| IAF.PR.B | Deemed-Retractible | -1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 21.29 Evaluated at bid price : 21.56 Bid-YTW : 5.38 % |
| RY.PR.G | Deemed-Retractible | -1.03 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2020-08-23 Maturity Price : 25.00 Evaluated at bid price : 25.02 Bid-YTW : -1.12 % |
| MFC.PR.C | Deemed-Retractible | -1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 21.38 Evaluated at bid price : 21.38 Bid-YTW : 5.33 % |
| BMO.PR.E | FixedReset Disc | -1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 19.55 Evaluated at bid price : 19.55 Bid-YTW : 4.36 % |
| TRP.PR.E | FixedReset Disc | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 13.35 Evaluated at bid price : 13.35 Bid-YTW : 5.58 % |
| CU.PR.G | Perpetual-Discount | 1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 21.80 Evaluated at bid price : 21.80 Bid-YTW : 5.24 % |
| IFC.PR.C | FixedReset Ins Non | 1.86 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 16.45 Evaluated at bid price : 16.45 Bid-YTW : 4.65 % |
| BIP.PR.A | FixedReset Disc | 1.91 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 16.00 Evaluated at bid price : 16.00 Bid-YTW : 6.22 % |
| GWO.PR.N | FixedReset Ins Non | 3.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 10.20 Evaluated at bid price : 10.20 Bid-YTW : 4.12 % |
| MFC.PR.G | FixedReset Ins Non | 4.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 17.90 Evaluated at bid price : 17.90 Bid-YTW : 4.66 % |
| NA.PR.W | FixedReset Disc | 5.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 16.35 Evaluated at bid price : 16.35 Bid-YTW : 4.43 % |
| CU.PR.C | FixedReset Disc | 6.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 15.00 Evaluated at bid price : 15.00 Bid-YTW : 4.77 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TRP.PR.C | FixedReset Disc | 157,200 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 9.02 Evaluated at bid price : 9.02 Bid-YTW : 5.29 % |
| BNS.PR.E | FixedReset Disc | 41,600 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-25 Maturity Price : 25.00 Evaluated at bid price : 25.15 Bid-YTW : 4.62 % |
| TD.PF.I | FixedReset Disc | 40,100 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 21.05 Evaluated at bid price : 21.05 Bid-YTW : 4.16 % |
| BAM.PF.E | FixedReset Disc | 35,200 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 14.11 Evaluated at bid price : 14.11 Bid-YTW : 5.54 % |
| TRP.PR.A | FixedReset Disc | 30,625 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2050-07-24 Maturity Price : 11.90 Evaluated at bid price : 11.90 Bid-YTW : 5.52 % |
| TD.PF.G | FixedReset Prem | 30,077 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-30 Maturity Price : 25.00 Evaluated at bid price : 25.13 Bid-YTW : 4.65 % |
| There were 14 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BAM.PR.X | FixedReset Disc | Quote: 10.45 – 17.27 Spot Rate : 6.8200 Average : 3.8095 YTW SCENARIO |
| IAF.PR.G | FixedReset Ins Non | Quote: 15.95 – 18.34 Spot Rate : 2.3900 Average : 1.4159 YTW SCENARIO |
| TD.PF.C | FixedReset Disc | Quote: 17.05 – 18.89 Spot Rate : 1.8400 Average : 1.0561 YTW SCENARIO |
| MFC.PR.J | FixedReset Ins Non | Quote: 17.40 – 19.17 Spot Rate : 1.7700 Average : 1.0381 YTW SCENARIO |
| TD.PF.D | FixedReset Disc | Quote: 18.63 – 20.00 Spot Rate : 1.3700 Average : 0.8961 YTW SCENARIO |
| MFC.PR.M | FixedReset Ins Non | Quote: 14.70 – 16.10 Spot Rate : 1.4000 Average : 0.9274 YTW SCENARIO |