{"id":1359,"date":"2007-10-24T17:54:28","date_gmt":"2007-10-24T21:54:28","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1359"},"modified":"2007-10-24T17:54:28","modified_gmt":"2007-10-24T21:54:28","slug":"spla-downgraded-by-dbrs","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1359","title":{"rendered":"SPL.A Downgraded by DBRS"},"content":{"rendered":"<p><a href=\"http:\/\/www.dbrs.com\">DBRS<\/a> announced today that it:<\/p>\n<blockquote><p>has today downgraded the Class A Shares issued by Mulvihill Pro-AMS RSP Split Share Corp. (the Company) from Pfd-3 to Pfd-4 with a Negative trend.<br \/>\n<strong>&#8230;<\/strong><br \/>\nThe rest of the net proceeds from the initial offering were invested in a diversified portfolio of Canadian and U.S. equities (the Managed Portfolio). After offering expenses, the Managed Portfolio provided asset coverage of approximately 1.8 times to the Class A Shares (downside protection of about 44%). In addition to providing principal protection for the Class A Shares, the Managed Portfolio is used to make distributions to the Class A Shares equal to 6.5% per annum and pay annual fees and expenses. Also, the Company has been making semi-annual contributions of $0.43 per Class A Share from the Managed Portfolio to a forward agreement with the Counterparty for the repayment of the Class A Shares principal on the Termination Date. Currently, 75.6% of the Class A principal is guaranteed by the Counterparty on the Termination Date.<\/p>\n<p>The Managed Portfolio has declined about 79% since inception. About one-third of the decline has resulted from the semi-annual contributions to the Class A Forward Account.<br \/>\n<strong>&#8230;<\/strong><br \/>\nThe main constraints to the rating are the following:<\/p>\n<p>(1) The Managed Portfolio\u2019s NAV is currently $3.83 per share, providing very little dividend income<\/p>\n<p>(2) The Company\u2019s annual expenses, dividend commitments and forward contributions cause a severe grind on the Managed Portfolio\u2019s NAV<\/p>\n<p>(3) Reliance on management to effectively budget the Managed Portfolio\u2019s NAV<\/p><\/blockquote>\n<p>SPL.A is tracked by HIMIPref\u2122 with a <a href=\"http:\/\/www.prefshares.com\/glossary.html#securityCode\">securityCode<\/a> of A43400. The <a href=\"http:\/\/www.prefshares.com\/glossary.html#creditRatings\">creditRatings<\/a> table of the <a href=\"http:\/\/www.prefshares.com\/glossary.html#permanentDatabase\">permanentDatabase<\/a> has been updated to reflect the new information.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>DBRS announced today that it: has today downgraded the Class A Shares issued by Mulvihill Pro-AMS RSP Split Share Corp. (the Company) from Pfd-3 to Pfd-4 with a Negative trend. &#8230; The rest of the &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-1359","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1359","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=1359"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1359\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}