{"id":42046,"date":"2021-03-06T14:25:50","date_gmt":"2021-03-06T19:25:50","guid":{"rendered":"http:\/\/prefblog.com\/?p=42046"},"modified":"2021-03-06T14:25:50","modified_gmt":"2021-03-06T19:25:50","slug":"cf-pr-a-cf-pr-c-dbrs-upgrades-trend-to-stable","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=42046","title":{"rendered":"CF.PR.A & CF.PR.C : DBRS Upgrades Trend To Stable"},"content":{"rendered":"

DBRS has announced<\/a> that it:<\/p>\n

confirmed the Cumulative Preferred Shares rating of Canaccord Genuity Group Inc.\u2019s (CG or the Company) at Pfd-4 (high) and changed the trend to Stable from Negative. The Company has a Support Assessment of SA3, which implies no expected systemic support.<\/p>\n

KEY RATING CONSIDERATIONS
\nThe trend change to Stable reflects DBRS Morningstar\u2019s view that the considerable uncertainties facing financial institutions, particularly those with more limited business models, caused by the Coronavirus Disease (COVID-19) pandemic have begun to abate. CG is a Canadian-based financial institution with $6.1 billion in assets as of Q3 2021, operating in the U.S., the United Kingdom (UK), and Australia, with a focus on capital markets activities and wealth management. The Company reported 9M 2021 revenue of $1.3 billion, up 44% from 9M 2020 earnings of $119 million, double the earnings of the previous year. CG benefited from the businesses it had acquired in 2019, the year prior to the pandemic, namely its U.S. capital markets business as well as its Australian wealth management operations.<\/p>\n

In confirming the rating, DBRS Morningstar recognizes CG\u2019s solid niche franchise, with a growing wealth management presence across various geographies, while remaining cognizant of the Company\u2019s increased leverage following its recent wealth management and other acquisitions. The Company has made acquisitions in Canada, the U.S., the UK, and Australia, and although it has now integrated these businesses it will need to continue to leverage the larger platform to further enhance efficiencies. The Company expects the combined businesses\u2019 success and efficiencies should drive profits and enable it to reduce leverage over time. However, DBRS Morningstar remains cognizant that the continued impact of the coronavirus-related downturns could, over the short term, create earnings volatility and impede the Company\u2019s ability to comfortably meet contractual payments.<\/p>\n

RATING DRIVERS
\nAlthough DBRS Morningstar considers CG as being well placed in its current rating category, over the longer term, further franchise diversification that contributes to sustained and improving earnings across segments while lowering leverage would result in an upgrade. Conversely, weakened credit fundamentals or inconsistent earnings would result in a rating downgrade. Furthermore, given CG\u2019s high reliance on market confidence to support its franchise, any significant operational or reputational issues would likely negatively affect the rating, as would material negative stresses to the Company\u2019s liquidity or funding profiles.<\/p><\/blockquote>\n

Affected issues are CF.PR.A and CF.PR.C.<\/p>\n","protected":false},"excerpt":{"rendered":"

DBRS has announced that it: confirmed the Cumulative Preferred Shares rating of Canaccord Genuity Group Inc.\u2019s (CG or the Company) at Pfd-4 (high) and changed the trend to Stable from Negative. The Company has a …<\/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-42046","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/42046","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=42046"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/42046\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}