{"id":51193,"date":"2025-12-03T23:12:41","date_gmt":"2025-12-04T04:12:41","guid":{"rendered":"https:\/\/prefblog.com\/?p=51193"},"modified":"2025-12-03T23:13:41","modified_gmt":"2025-12-04T04:13:41","slug":"dbrs-lb-pr-h-on-review-positive","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=51193","title":{"rendered":"DBRS: LB.PR.H On Review-Positive"},"content":{"rendered":"

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

placed the credit ratings of Laurentian Bank of Canada (LBC or the Bank), including the Bank’s Long-Term Issuer Rating of BBB, Under Review with Positive Implications. This credit rating action follows the December 2, 2025, announcement that Fairstone Bank of Canada (Fairstone or the Group; rated BBB, Under Review with Positive Implications) has entered into a definitive agreement to acquire all of LBC’s issued and outstanding common shares, subject to approval by the Bank’s shareholders and receipt of required regulatory approvals. In parallel, National Bank of Canada (National, with a Long-Term Issuer Rating of AA with a Stable trend) has entered into a definitive agreement to acquire LBC’s retail and small and medium-size (SME) banking portfolios as well as its syndicated loan portfolio. LBC’s Long-Term Issuer Rating is composed of an Intrinsic Assessment (IA) of BBB and a Support Assessment (SA) of SA3, which reflects no expectation of timely systemic support. As a result, the Bank’s Long-Term Issuer Rating is equivalent to its IA.<\/p>\n

KEY CREDIT RATING CONSIDERATIONS
\nThe Under Review with Positive Implications designation reflects Morningstar DBRS’ expectation that LBC’s credit ratings would benefit from the potential upgrade of Fairstone’s credit ratings as a result of the acquisition-driven improvement in the Group’s consolidated credit profile. After the completion of the acquisition, the Bank’s SA designation of SA3 would change to SA1 and its long-term credit ratings will be driven by those of the Group.<\/p><\/blockquote>\n

Similarly, and as implied above, Fairstone is on Review-Positive<\/a>:<\/p>\n

DBRS Limited (Morningstar DBRS) placed Fairstone Bank of Canada’s (Fairstone or the Group) credit ratings, including the Group’s Long-Term Issuer Rating of BBB, Under Review with Positive Implications. As a result, Morningstar DBRS also placed its credit ratings on Home Trust Company (HTC), a fully owned subsidiary of Fairstone, Under Review with Positive Implications. These credit rating actions follow the December 2, 2025, announcement that Fairstone has entered into a definitive agreement to acquire all of Laurentian Bank of Canada’s (LBC) issued and outstanding common shares, subject to approval by LBC’s shareholders and receipt of required regulatory approvals. Concurrently, Morningstar DBRS changed HTC’s Support Assessment designation to SA1 from SA3 and withdrew its Intrinsic Assessment (IA) of BBB. Fairstone’s Long-Term Issuer Rating is composed of an IA of BBB and a Support Assessment of SA3, which reflects no expectation of timely systemic support. As a result, the Group’s Long-Term Issuer Rating is equivalent to its IA.<\/p>\n

KEY CREDIT RATING CONSIDERATIONS
\nThe Under Review with Positive Implications designation reflects Morningstar DBRS’ expectation that the potential acquisition would have a materially positive impact on the Group’s consolidated credit profile. This would likely result in a positive credit rating action: either an upgrade of Fairstone’s credit ratings or a Positive trend, to be resolved within approximately 12 months of deal closure, which is currently expected in late 2026, depending on integration progress.<\/p><\/blockquote>\n

DBRS also released its comments on the deal<\/a>.<\/p>\n

LB.PR.H was issued as a NVCC-compliant FixedReset, 4.30%+255, that commenced trading 2014-4-3<\/a> after being announced 2014-3-25<\/a>. The extension was announced 2019-5-7<\/a>. LB.PR.H reset At 4.123%<\/a> effective June 15, 2019. I made no recommendation regarding conversion<\/a> and there was no conversion<\/a>. The issue was downgraded to Pfd-4(high)<\/a> by DBRS in November, 2024.<\/p>\n","protected":false},"excerpt":{"rendered":"

DBRS has announced that it: placed the credit ratings of Laurentian Bank of Canada (LBC or the Bank), including the Bank’s Long-Term Issuer Rating of BBB, Under Review with Positive Implications. This credit rating action …<\/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-51193","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/51193","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=51193"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/51193\/revisions"}],"predecessor-version":[{"id":51196,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/51193\/revisions\/51196"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}