{"id":1154,"date":"2007-09-05T16:19:00","date_gmt":"2007-09-05T20:19:00","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1154"},"modified":"2007-09-05T16:19:00","modified_gmt":"2007-09-05T20:19:00","slug":"esprb-downgraded-by-dbrs","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1154","title":{"rendered":"ES.PR.B Downgraded by DBRS"},"content":{"rendered":"<p><a href=\"http:\/\/www.dbrs.com\">DBRS<\/a> has announced it:<\/p>\n<blockquote>\n<p>has today downgraded the Class B, Preferred Shares (the Preferred Shares) issued by Energy Split Corporation (the Corporation) from Pfd-2 (low) to Pfd-3 (high) with a Stable trend and has removed the Preferred Shares from Under Review with Developing Implications where the rating was placed on November 8, 2006.<\/p>\n<p>The net asset value (NAV) of the Corporation decreased significantly shortly after its reorganization. The quick decline can be attributed to the Canadian government\u2019s October 31, 2006, announcement relating to the change in taxation on income trusts and to the sensitivity of the Royalty Trust Portfolio, consisting of oil and gas income trusts, relative to the price of oil. Downside protection decreased from 54% at reorganization to 42% on November 2, 2006. Since then, the downside protection fluctuated in a band from 35% to 45% before falling to 34% on August 30, 2007, the low point since reorganization.<br \/>\n<b>&#8230;<\/b><br \/>\nThe redemption date for both classes of shares will be September 16, 2011.<\/p>\n<\/blockquote>\n<p>Asset coverage is 1.52:1 as of August 30, according to <a href=\"http:\/\/www.scotiamanagedcompanies.com\/\">Scotia Managed Companies<\/a>. Thus,\u00a0the underlying portfolio\u00a0can lose 34% of its value\u00a0before eating into the value set aside on the balance sheet for preferred shareholders, which is what DBRS means by &#8220;downside protection&#8221;.<\/p>\n<p>ES.PR.B is not tracked by HIMIPref&trade;.\n<\/p>\n<p><!--34447d646a30aec1cc44d5c94562ba20--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>DBRS has announced it: has today downgraded the Class B, Preferred Shares (the Preferred Shares) issued by Energy Split Corporation (the Corporation) from Pfd-2 (low) to Pfd-3 (high) with a Stable trend and has removed &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-1154","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1154"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1154\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}