{"id":20567,"date":"2012-12-14T00:21:28","date_gmt":"2012-12-14T04:21:28","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=20567"},"modified":"2012-12-14T00:21:28","modified_gmt":"2012-12-14T04:21:28","slug":"cm-preferreds-downgraded-by-sp","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=20567","title":{"rendered":"CM Preferreds Downgraded by S&amp;P"},"content":{"rendered":"<p>Standard and Poor&#8217;s <a href=\"http:\/\/www.standardandpoors.com\/ratings\/articles\/en\/us\/?articleType=HTML&#038;assetID=1245344945125\">has announced<\/a>:<\/p>\n<blockquote>\n<ul>\n<li>\u2022We believe that the Canadian banking sector is encountering incremental pressure from headwinds facing the Canadian economy, which is heightening<br \/>\neconomic risk in the banking system.<\/p>\n<li>\u2022We also believe that industry risk for the Canadian banking sector is<br \/>\nincreasing. We expect that intensifying competition for loans and deposits will lead to pressure on profitability growth, especially in banks&#8217; retail businesses.<\/p>\n<li>\u2022We are affirming our &#8216;A+\/A-1&#8217; long- and short-term issuer credit ratings<br \/>\non CIBC, as well as the &#8216;A+&#8217; issue rating on CIBC&#8217;s senior unsecured debt. We are lowering our issue rating on CIBC&#8217;s nondeferrable subordinated debt to &#8216;BBB+&#8217; from &#8216;A-&#8216;, and our rating on its preferred shares and hybrids to &#8216;BBB&#8217; from &#8216;BBB+&#8217;.<\/p>\n<li>\u2022The stable outlook reflects our expectation that the bank&#8217;s credit fundamentals will remain consistent with its current ratings over the next 24 months.<\/ul>\n<p><b>&#8230;<\/b><br \/>It is our view that CIBC is a &#8220;systemically important&#8221; bank and that it would likely benefit from extraordinary government support in times of stress.<\/p><\/blockquote>\n<p>This results in the CM PerpetualPremiums, CM.PR.D (Series 26) and CM.PR.E (Series 27)  being downgraded from P-2 to P-2(low). CM.PR.G (Series 29) can be taken as equivalent although it is not rated by S&#038;P, oddly enough. These are the issues which have been recognized by OSFI has having a <a href=\"http:\/\/www.prefblog.com\/?p=16022\">good enough NVCC clause<\/a>.<\/p>\n<p>CM&#8217;s other three issues outstanding are CM.PR.K (Series 33), CM.PR.L (Series 35) and CM.PR.M (Series 37), have been downgraged to P-2 from P-2(high)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Standard and Poor&#8217;s has announced: \u2022We believe that the Canadian banking sector is encountering incremental pressure from headwinds facing the Canadian economy, which is heightening economic risk in the banking system. \u2022We also believe that &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-20567","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20567","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=20567"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20567\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}