{"id":48794,"date":"2017-10-19T20:28:00","date_gmt":"2017-10-20T00:28:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=48794"},"modified":"2025-07-25T20:30:07","modified_gmt":"2025-07-26T00:30:07","slug":"lcs-pr-a-upgraded-to-pfd-3low-by-dbrs","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=48794","title":{"rendered":"LCS.PR.A Upgraded to Pfd-3(low) by DBRS"},"content":{"rendered":"<p>DBRS <a href=\"http:\/\/www.dbrs.com\/research\/317837\/dbrs-upgrades-brompton-lifeco-split-corp-preferred-shares-to-pfd-3-low.html\">has announced<\/a> that it has:<\/p>\n<blockquote>\n<p>upgraded the rating of the Preferred Shares issued by Brompton Lifeco Split Corp. (the Company) to Pfd-3 (low) from Pfd-4 (high).<br \/><b>&#8230;<\/b><br \/>Based on the dividend yields of the underlying companies in the Portfolio and after management fees and other expenses have been paid, the dividend coverage ratio stands at 0.6x.<\/p>\n<p> The main form of credit enhancement available to the Preferred Shares is a buffer of downside protection. Downside protection corresponds to the percentage decline in market value of the Portfolio that must be experienced before the Preferred Shares would be in a loss position. Since the last review, the amount of downside protection available to the Preferred Shares has increased to 39.8% posting a 5.4% gain as of October 12, 2017. The growth in downside protection was a combination of a price appreciation and a dividend payout increase of the underlying shares of the Portfolio as well as additional income generated from option writing.<\/p>\n<\/blockquote>\n<p>Brompton Group was <a href=\"http:\/\/bromptongroup.com\/static\/pdf\/funds\/lcs\/lcsratingoct19.pdf\">quick to highlight the upgrade<\/a>:<\/p>\n<blockquote>\n<p>As a result of improving portfolio performance, DBRS Limited (\u201cDBRS\u201d) issued a press release on Thursday, October 19, 2017 announcing that the preferred share rating for Brompton Lifeco Split Corp. has been upgraded from Pfd-4(high) to Pfd-3(low). For a full copy of the DBRS press release please visit their website at www.dbrs.com.<\/p>\n<\/blockquote>\n<p>This is quite the turnaround from the dark days of 2012 <a href=\"https:\/\/prefblog.com\/?p=20109\">when the issue was downgraded to Pfd-5(high)<\/a> and a notch better than its <a href=\"https:\/\/prefblog.com\/?p=24069\">December 2013 upgrade to Pfd-4(high)<\/a>.<\/p>\n<p>The Whole Unit <a href=\"http:\/\/bromptongroup.com\/funds\/\">NAVPU as of 2017-10-12 was 16.71<\/a>. Income coverage in 2016 was, <a href=\"https:\/\/prefblog.com\/?p=35138\">by my calculation<\/a>, 65%. The total assets of the fund, including Capital Units, were <a href=\"http:\/\/bromptongroup.com\/funds\/fund\/lcs\/overview\">$86-million as of 2017-9-30<\/a>.<\/p>\n<p>LCS.PR.A is <a href=\"https:\/\/prefblog.com\/?p=26684\">tracked by HIMIPref&trade;<\/a> but relegated to the Scraps index on both credit concerns and volume concerns. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>DBRS has announced that it has: upgraded the rating of the Preferred Shares issued by Brompton Lifeco Split Corp. (the Company) to Pfd-3 (low) from Pfd-4 (high).&#8230;Based on the dividend yields of the underlying companies &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-48794","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48794","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=48794"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48794\/revisions"}],"predecessor-version":[{"id":48795,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48794\/revisions\/48795"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}