{"id":17319,"date":"2011-12-14T02:11:59","date_gmt":"2011-12-14T06:11:59","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=17319"},"modified":"2011-12-14T02:11:59","modified_gmt":"2011-12-14T06:11:59","slug":"cm-preferred-technical-downgrade-on-global-scale-by-sp","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=17319","title":{"rendered":"CM: Preferred Technical Downgrade by S&amp;P"},"content":{"rendered":"<p>Standard &#038; Poor&#8217;s <a href=\"http:\/\/www.standardandpoors.com\/ratings\/articles\/en\/us\/?articleType=HTML&#038;assetID=1245325787551\">has announced<\/a>:<\/p>\n<blockquote>\n<ul>\n<li>Following a review under Standard &#038; Poor&#8217;s revised bank criteria (published on Nov. 9, 2011), we have affirmed our &#8216;A+\/A-1&#8217; issuer credit rating on Canadian Imperial Bank of Commerce (CIBC). The outlook is<br \/>\nstable.<\/p>\n<li>Our ratings on CIBC reflect our adequate assessments for its business position, capital and earnings, risk position, and liquidity, and average funding.\n<li>The ratings on CIBC benefit from one notch of uplift for potential extraordinary government support in a crisis.\n<li>We expect CIBC&#8217;s profitability to continue to improve as loan quality improves and the company further executes on its core banking strategy.<\/ul>\n<p>As we previously announced, on Dec. 13, 2011, Standard &#038; Poor&#8217;s Ratings Services affirmed its &#8216;A+\/A-1&#8217;  issuer credit rating (ICR) on CIBC. The outlook is stable. The stand-alone credit profile (SACP) is &#8216;a&#8217;. In addition, we lowered the rating on CIBC&#8217;s nondeferrable subordinated debt to &#8216;A-&#8216; from &#8216;A&#8217;  and the rating on its preferred stock to &#8216;BBB+&#8217; from &#8216;A-&#8216;. CIBC&#8217;s nondeferrable subordinated debt is rated one notch below the &#8216;a&#8217; SACP as opposed to being notched from the &#8216;A+&#8217; ICR, based on our new hybrid criteria. Nondeferrable subordinated debt is rated below a bank&#8217;s SACP in countries whose legal or regulatory frameworks may not support this type of debt in a stress scenario. Recent guidance from Canada&#8217;s Office of the Superintendant of Financial Institutions expresses an expectation that all Tier 1 and Tier 2 capital instruments &#8220;must be able to absorb losses in a failed financial institution.&#8221; We expect different treatment would apply to capital instruments and senior debt as a Canadian bank approaches a state of nonviability. Preferred stock is rated two notches below the &#8216;a&#8217; SACP, consistent with our new hybrid criteria.<\/p><\/blockquote>\n<p>CM has the following preferred share issues outstanding: CM.PR.D, CM.PR.E and CM.PR.G (PerpetualPremium); CM.PR.I, CM.PR.J and CM.PR.P (DeemedRetractible); and CM.PR.K, CM.PR.L and CM.PR.M (FixedReset).<\/p>\n<p>The change has affected the rating of the preferreds on the local scale: CM.PR.D and CM.PR.E are now P-2 (CM.PR.G is not rated by S&#038;P): all other issues are now P-2(high).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Standard &#038; Poor&#8217;s has announced: Following a review under Standard &#038; Poor&#8217;s revised bank criteria (published on Nov. 9, 2011), we have affirmed our &#8216;A+\/A-1&#8217; issuer credit rating on Canadian Imperial Bank of Commerce (CIBC). &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-17319","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17319","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=17319"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17319\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}