LB.PR.D & LB.PR.E : DBRS says "Trend Positive"

DBRS has announced that it has:

changed the trend to Positive from Stable on all the long- and short-term ratings of Laurentian Bank of Canada (Laurentian or the Bank).

Further positive rating actions will be contingent upon Laurentian’s ability to sustainably grow internal capital demonstrated through various profitability measures as a result of core businesses and further cost efficiencies, while maintaining conservative credit and financial risk profiles.

Still a Pfd-3 issue, but those who wish to play the credit-anticipation game might consider this news of interest (only LB.PR.E would be appropriate for this! LB.PR.D is more in the nature of a short-term investment!). S&P continues to rate the issues “P-3(high)”.

Laurentian has eschewed “Innovative Tier-1 Capital” in its financing; preferred shares are its sole source of non-equity Tier-1 Capital, amounting to 22.2% of the total. It has good-quality ratios: The tier 1 ratio is 10.3% and the Total Capital Ratio is 12.4%, according to the 2006 Financials.

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