{"id":22564,"date":"2013-07-23T01:12:33","date_gmt":"2013-07-23T05:12:33","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=22564"},"modified":"2013-07-23T01:12:33","modified_gmt":"2013-07-23T05:12:33","slug":"july-22-2013","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=22564","title":{"rendered":"July 22, 2013"},"content":{"rendered":"

Westcoast Energy, proud issuer of W.PR.H and W.PR.J, was confirmed at Pfd-2(low) by DBRS<\/a>:<\/p>\n

The rating confirmations reflect Westcoast\u2019s strong business risk profile, underpinned by low-risk, fee-based, mostly regulated operations typically accounting for nearly 90% of earnings. Its financial ratios profile has also remained reasonable for the rating category.<\/p>\n

In June 2013, DBRS placed Spectra Energy Capital, LLC (Spectra, rated BBB (high); 100% owner of Westcoast) under review with negative implications. This rating action follows the announcement that Spectra intends to drop down all of its remaining U.S. Transmission and Storage Assets to Spectra Energy Partners (SEP; a master limited partnership controlled by Spectra) by the end of 2013 (for details, refer to DBRS press release, June 12, 2013). Since DBRS rates Westcoast on a stand-alone basis, given its demonstrated independent access to Canadian debt markets and track record of maintaining a prudent financial risk profile, this rating action does not affect current ratings for Westcoast.<\/p>\n

DBRS expects Westcoast\u2019s significant capex program, $1 billion in 2012 and a projected $900 million for 2013, to remain elevated in the medium term, resulting in negative free cash flows and a pressuring of its credit ratios, as incremental financing will likely come from increased long-term debt issuance. While the Company\u2019s capex program is substantial, spending is allocated to low-risk transmission, gathering and processing projects in the liquids-rich gas basins of western Canada, which will continue to support Westcoast\u2019s relatively strong business risk profile. DBRS believes the Company will benefit over the medium to long term from strong exploration and unconventional drilling activity in western Canada, given the Company\u2019s planned expansion projects, with long-term contractual commitments being placed into service in stages through 2014. Increasing earnings and cash flow from expansions placed in service to date have resulted in relatively strong credit ratios. Although Westcoast\u2019s credit metrics are underpinned by mostly low-risk and regulated operations, consolidated metrics will likely continue to be pressured over the medium term as a result of its significant growth capex, but will likely remain within the parameters of the current ratings.<\/p><\/blockquote>\n

S&P has a different view on the independence of the Spectra and Westcoast ratings and has the issues on Credit Watch Negative<\/a>.<\/p>\n

It was another mixed day for the Canadian preferred share market, with PerpetualDiscounts off 3bp, FixedResets up 8bp and DeemedRetractibles gaining 2bp. Volatility was high, with a surprisingly (considering the overall market) lengthy Performance Highlights table fairly evenly split between winners and losers. Volume was low.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2334 %<\/td>\n2,571.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.15 %<\/td>\n3.44 %<\/td>\n36,890<\/td>\n18.51<\/td>\n1<\/td>\n0.1751 %<\/td>\n4,001.0<\/td>\n<\/tr>\n
Floater<\/td>\n2.73 %<\/td>\n2.94 %<\/td>\n91,642<\/td>\n19.89<\/td>\n4<\/td>\n-0.2334 %<\/td>\n2,776.6<\/td>\n<\/tr>\n
OpRet<\/td>\n4.58 %<\/td>\n3.34 %<\/td>\n79,861<\/td>\n0.68<\/td>\n3<\/td>\n0.0509 %<\/td>\n2,633.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.66 %<\/td>\n4.42 %<\/td>\n56,096<\/td>\n3.92<\/td>\n6<\/td>\n-0.0275 %<\/td>\n2,975.7<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0509 %<\/td>\n2,408.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.60 %<\/td>\n4.94 %<\/td>\n101,777<\/td>\n0.76<\/td>\n12<\/td>\n0.1123 %<\/td>\n2,291.1<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.32 %<\/td>\n5.36 %<\/td>\n145,672<\/td>\n14.83<\/td>\n26<\/td>\n-0.0290 %<\/td>\n2,421.3<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.96 %<\/td>\n3.60 %<\/td>\n245,184<\/td>\n3.98<\/td>\n84<\/td>\n0.0811 %<\/td>\n2,478.4<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.05 %<\/td>\n4.49 %<\/td>\n201,386<\/td>\n6.86<\/td>\n43<\/td>\n0.0206 %<\/td>\n2,390.3<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
FTS.PR.G<\/td>\nFixedReset<\/td>\n-1.56 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-22
\nMaturity Price : 22.78
\nEvaluated at bid price : 24.02
\nBid-YTW : 3.90 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n-1.56 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-22
\nMaturity Price : 23.04
\nEvaluated at bid price : 23.40
\nBid-YTW : 3.44 %<\/td>\n<\/tr>\n
CU.PR.G<\/td>\nPerpetual-Discount<\/td>\n-1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-22
\nMaturity Price : 22.74
\nEvaluated at bid price : 23.10
\nBid-YTW : 4.94 %<\/td>\n<\/tr>\n
PWF.PR.P<\/td>\nFixedReset<\/td>\n-1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-22
\nMaturity Price : 23.34
\nEvaluated at bid price : 24.66
\nBid-YTW : 3.34 %<\/td>\n<\/tr>\n
MFC.PR.K<\/td>\nFixedReset<\/td>\n-1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.90
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n
CU.PR.D<\/td>\nPerpetual-Discount<\/td>\n1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-22
\nMaturity Price : 24.12
\nEvaluated at bid price : 24.50
\nBid-YTW : 5.05 %<\/td>\n<\/tr>\n
BAM.PR.X<\/td>\nFixedReset<\/td>\n1.12 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-22
\nMaturity Price : 23.04
\nEvaluated at bid price : 24.43
\nBid-YTW : 3.68 %<\/td>\n<\/tr>\n
BNS.PR.Y<\/td>\nFixedReset<\/td>\n1.61 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.99
\nBid-YTW : 3.47 %<\/td>\n<\/tr>\n
CM.PR.K<\/td>\nFixedReset<\/td>\n1.64 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.00
\nBid-YTW : 1.30 %<\/td>\n<\/tr>\n
BNS.PR.P<\/td>\nFixedReset<\/td>\n1.74 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-04-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.60
\nBid-YTW : 3.71 %<\/td>\n<\/tr>\n
MFC.PR.D<\/td>\nFixedReset<\/td>\n2.50 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-06-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.82
\nBid-YTW : 3.62 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
POW.PR.G<\/td>\nPerpetual-Premium<\/td>\n56,509<\/td>\nRBC crossed 48,800 at 25.35.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-04-15
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.26
\nBid-YTW : 5.49 %<\/td>\n<\/tr>\n
RY.PR.X<\/td>\nFixedReset<\/td>\n55,698<\/td>\nNesbitt crossed 50,000 at 26.31.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-08-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.34
\nBid-YTW : 2.21 %<\/td>\n<\/tr>\n
TRP.PR.D<\/td>\nFixedReset<\/td>\n48,560<\/td>\nNational crossed 31,300 at 25.30.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-04-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.32
\nBid-YTW : 3.75 %<\/td>\n<\/tr>\n
MFC.PR.K<\/td>\nFixedReset<\/td>\n30,846<\/td>\nRBC bought 10,200 from Scotia at 10,200.
\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.90
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n30,670<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-22
\nMaturity Price : 23.75
\nEvaluated at bid price : 25.00
\nBid-YTW : 3.59 %<\/td>\n<\/tr>\n
BNS.PR.O<\/td>\nDeemed-Retractible<\/td>\n28,100<\/td>\nRBC crossed 25,000 at 26.00.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-04-28
\nMaturity Price : 25.75
\nEvaluated at bid price : 25.95
\nBid-YTW : 4.20 %<\/td>\n<\/tr>\n
There were 21 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
MFC.PR.G<\/td>\nFixedReset<\/td>\nQuote: 25.75 – 26.50
\nSpot Rate : 0.7500
\nAverage : 0.4321<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2016-12-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.75
\nBid-YTW : 3.60 %<\/td>\n<\/tr>\n

FTS.PR.G<\/td>\nFixedReset<\/td>\nQuote: 24.02 – 24.74
\nSpot Rate : 0.7200
\nAverage : 0.4786<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-22
\nMaturity Price : 22.78
\nEvaluated at bid price : 24.02
\nBid-YTW : 3.90 %<\/td>\n<\/tr>\n

CIU.PR.A<\/td>\nPerpetual-Discount<\/td>\nQuote: 23.00 – 23.41
\nSpot Rate : 0.4100
\nAverage : 0.2727<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-22
\nMaturity Price : 22.67
\nEvaluated at bid price : 23.00
\nBid-YTW : 5.06 %<\/td>\n<\/tr>\n

PWF.PR.P<\/td>\nFixedReset<\/td>\nQuote: 24.66 – 24.97
\nSpot Rate : 0.3100
\nAverage : 0.1996<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-22
\nMaturity Price : 23.34
\nEvaluated at bid price : 24.66
\nBid-YTW : 3.34 %<\/td>\n<\/tr>\n

HSB.PR.C<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.00 – 25.30
\nSpot Rate : 0.3000
\nAverage : 0.1950<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.00
\nBid-YTW : 5.18 %<\/td>\n<\/tr>\n

BAM.PF.B<\/td>\nFixedReset<\/td>\nQuote: 25.05 – 25.35
\nSpot Rate : 0.3000
\nAverage : 0.1981<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2043-07-22
\nMaturity Price : 23.14
\nEvaluated at bid price : 25.05
\nBid-YTW : 4.15 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Westcoast Energy, proud issuer of W.PR.H and W.PR.J, was confirmed at Pfd-2(low) by DBRS: The rating confirmations reflect Westcoast\u2019s strong business risk profile, underpinned by low-risk, fee-based, mostly regulated operations typically accounting for nearly 90% …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-22564","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/22564","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=22564"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/22564\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}