{"id":7675,"date":"2009-08-27T22:47:17","date_gmt":"2009-08-28T02:47:17","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=7675"},"modified":"2009-08-27T22:47:17","modified_gmt":"2009-08-28T02:47:17","slug":"dbrs-serves-up-massive-splitshare-surprise-review","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=7675","title":{"rendered":"DBRS Serves Up Massive SplitShare Surprise Review"},"content":{"rendered":"

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

has today taken a range of rating actions on 54 structured preferred shares issued by 49 split share companies and trusts (the Issuers). All the trends are now Stable.<\/p>\n

Each of the Issuers has invested in a portfolio of securities (the Portfolio) funded by issuing two classes of shares \u2013 dividend-yielding preferred shares or securities (the Preferred Shares) and capital shares or units (the Capital Shares). The main form of credit enhancement available to these 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. The amount of downside protection available to Preferred Shares will fluctuate over time based on changes in the market value of the Portfolio.<\/p>\n

Of the 54 structured Preferred Share ratings updated today by DBRS, 32 have been upgraded, 18 have been confirmed and four have been downgraded. The majority of the ratings have been upgraded as a result of the strong gains in global equity markets over the past five months. In the first quarter of 2009, DBRS downgraded many of its Preferred Share ratings because of rapid and substantial declines in company net asset values (NAVs). From August 31, 2008, to March 9, 2009, the S&P\/TSX Composite Index lost 45% of its value. Since March 9, the index has gained back more than half of those losses. As a result, many of the Preferred Shares that were downgraded in February or March have seen significant increases in NAV and are now being upgraded.<\/p>\n

In addition to the recent rebound in equity markets, another factor in today\u2019s rating changes is the release of an updated DBRS split share methodology, \u201cRating Canadian Split Share Companies and Trusts,\u201d which details DBRS\u2019s approach to rating Preferred Shares issued by split share companies and trusts. DRBS has applied a number of changes to strengthen its split share rating process, <\/p><\/blockquote>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
DBRS Review Announced 2009-8-27<\/td>\n<\/tr>\n
Ticker<\/td>\nOld
Rating<\/td>\n		Asset
Coverage<\/td>\n		Last
PrefBlog
Post<\/td>\n		HIMIPref™
Index<\/td>\n		New
Rating<\/td>\n<\/tr>\n
CGI.PR.B<\/td>\nPfd-1<\/td>\n3.4-:1
8\/27<\/a><\/td>\n		Capital Unit Dividend In Doubt<\/a><\/td>\nSplitShare<\/td>\nPfd-1(low)<\/td>\n<\/tr>\n
CGI.PR.C<\/td>\nPfd-1<\/td>\n3.4-:1
8\/27<\/a><\/td>\n		Capital Unit Dividend In Doubt<\/a><\/td>\nScraps<\/td>\nPfd-1(low)<\/td>\n<\/tr>\n
BIG.PR.B<\/td>\nPfd-2<\/td>\n3.4-:1
8\/20<\/a><\/td>\n		Offering Closes<\/a><\/td>\nNone<\/td>\nPfd-2(high)<\/td>\n<\/tr>\n
CBU.PR.A<\/td>\nPfd-2(low)<\/td>\n3.4+:1
8\/26<\/a><\/td>\n		Completes investment of issue proceeds<\/a><\/td>\nNone<\/td>\nPfd-2<\/td>\n<\/tr>\n
DFN.PR.A<\/td>\nPfd-3<\/td>\n2.0-:1
8\/14<\/a><\/td>\n		Semi-Annual Financials<\/a><\/td>\nScraps<\/td>\nPfd-3(high)<\/td>\n<\/tr>\n
UST.PR.A<\/td>\nPfd-2(low)<\/td>\n1.8+:1
8\/26<\/a><\/td>\n		Renews Issuer Bid<\/a><\/td>\nNone<\/td>\nPfd-3(high)<\/td>\n<\/tr>\n
LFE.PR.A<\/td>\nPfd-4<\/td>\n1.6+:1
8\/14<\/a><\/td>\n		Semi-annual Financials<\/a><\/td>\nScraps<\/td>\nPfd-3(low)<\/td>\n<\/tr>\n
FBS.PR.B<\/td>\nPfd-4<\/td>\n1.6-:1
8\/20<\/a><\/td>\n		Capital Unit Dividend Reinstated<\/a><\/td>\nScraps<\/td>\nPfd-3<\/td>\n<\/tr>\n
ASC.PR.A<\/td>\nPfd-5(low)<\/td>\n1.1-:1
8\/21<\/a><\/td>\n		Downgraded<\/a><\/td>\nScraps<\/td>\nPfd-5<\/td>\n<\/tr>\n
ALB.PR.A<\/td>\nPfd-4<\/td>\nN\/A<\/a><\/td>\nDowngraded<\/a><\/td>\nScraps<\/td>\nPfd-3<\/td>\n<\/tr>\n
BSD.PR.A<\/td>\nPfd-5<\/td>\n1.0+:1
8\/21<\/a><\/td>\n		Downgraded<\/a><\/td>\nScraps<\/td>\nPfd-5
Trend
Stable<\/td>\n<\/tr>\n
DF.PR.A<\/td>\nPfd-3(low)<\/td>\n1.7-:1
8\/14<\/a><\/td>\n		Semi-Annual Financials<\/a><\/td>\nScraps<\/td>\nPfd-3<\/td>\n<\/tr>\n
DGS.PR.A<\/td>\nPfd-3(low)<\/td>\n1.7+:1
8\/20<\/a><\/td>\n		Downgraded<\/a><\/td>\nNone<\/td>\nPfd-3<\/td>\n<\/tr>\n
ES.PR.B<\/td>\nPfd-5<\/td>\nN\/A<\/a><\/td>\nDowngraded<\/a><\/td>\nNone<\/td>\nPfd-4(low)<\/td>\n<\/tr>\n
FCS.PR.A<\/td>\nPfd-4<\/td>\n1.4+:1
8\/26<\/a><\/td>\n		Downgraded<\/a><\/td>\nNone<\/td>\nPfd-3(low)<\/td>\n<\/tr>\n
GFV.PR.A<\/td>\nPfd-3<\/td>\n1.6+:1
8\/20<\/a><\/td>\n		Downgraded<\/a><\/td>\nNone<\/td>\nPfd-3(high)<\/td>\n<\/tr>\n
HPF.PR.A<\/td>\nPfd-2(low)<\/td>\nTheir Numbers<\/a> Note Calculation Dispute<\/a><\/td>\nDowngraded<\/a><\/td>\nScraps<\/td>\nPfd-2(low)
Stable<\/td>\n<\/tr>\n
HPF.PR.B<\/td>\nPfd-5(low)<\/td>\nTheir Numbers<\/a> Note Calculation Dispute<\/a><\/td>\nDowngraded<\/a><\/td>\nScraps<\/td>\nPfd-5(low)
Trend
Stable<\/td>\n<\/tr>\n
FIG.PR.A<\/td>\nPfd-5<\/td>\nIn
Transition<\/a><\/td>\n		Capital Units Rights Offering<\/a><\/td>\nScraps<\/td>\nPfd-4<\/td>\n<\/tr>\n
PIC.PR.A<\/td>\nPfd-5<\/td>\n1.3-:1
8\/20<\/a><\/td>\n		Downgraded<\/a><\/td>\nScraps<\/td>\nPfd-4<\/td>\n<\/tr>\n
NBF.PR.A<\/td>\nPfd-4(low)<\/td>\n1.4+:1
8\/26<\/a><\/td>\n		Capital Unit Dividend Reinstated<\/a><\/td>\nNone<\/td>\nPfd-3<\/td>\n<\/tr>\n
SLS.PR.A<\/td>\nPfd-5(low)<\/td>\nN\/A<\/a><\/td>\nDowngraded<\/a><\/td>\nNone<\/td>\nPfd-4<\/td>\n<\/tr>\n
SNP.PR.V<\/td>\nPfd-4(high)<\/td>\nN\/A<\/a><\/td>\nDowngraded<\/a><\/td>\nNone<\/td>\nPfd-3(low)<\/td>\n<\/tr>\n
YLD.PR.A<\/td>\nPfd-5(low)<\/td>\n0.5+:1
1\/30<\/a><\/td>\n		Downgraded<\/a><\/td>\nScraps<\/td>\nPfd-5<\/td>\n<\/tr>\n
TXT.PR.A<\/td>\nPfd-4(low)<\/td>\n1.3+:1
8\/20<\/a><\/td>\n		Downgraded<\/a><\/td>\nNone<\/td>\nPfd-4(high)<\/td>\n<\/tr>\n
WFS.PR.A<\/td>\nPfd-4(low)<\/td>\n1.3+:1
8\/20<\/a><\/td>\n		Downgraded<\/a><\/td>\nScraps<\/td>\nPfd-4<\/td>\n<\/tr>\n
ABK.PR.B<\/td>\nPfd-3<\/td>\nN\/A<\/a><\/td>\nMiniscule Call for Redemption<\/a><\/td>\nNone<\/td>\nPfd-3(high)<\/td>\n<\/tr>\n
TDS.PR.B<\/td>\nPfd-3<\/td>\n2.3-:1
8\/20<\/a><\/td>\n		Downgraded<\/a><\/td>\nScraps<\/td>\nPfd-3(high)<\/td>\n<\/tr>\n
FTN.PR.A<\/td>\nPfd-4<\/td>\n1.8+:1
8\/14<\/a><\/td>\n		Semi-Annual Financials<\/a><\/td>\nScraps<\/td>\nPfd-3(low)<\/td>\n<\/tr>\n
FFN.PR.A<\/td>\nPfd-5(high)<\/td>\n1.6-:1
8\/14<\/a><\/td>\n		Semi-Annual Financials<\/a><\/td>\nScraps<\/td>\nPfd-4(high)<\/td>\n<\/tr>\n
BXN.PR.B<\/td>\nPfd-3(high)<\/td>\nN\/A<\/a><\/td>\nDowngraded<\/a><\/td>\nNone<\/td>\nPfd-3<\/td>\n<\/tr>\n
BK.PR.A<\/td>\nPfd-3<\/td>\n2.0+:1
8\/14<\/a><\/td>\n		Semi-Annual Financials<\/a><\/td>\nScraps<\/td>\nPfd-3(high)<\/td>\n<\/tr>\n
BSC.PR.A<\/td>\nPfd-3<\/td>\nN\/A<\/a><\/td>\nDividend Policy Revised<\/a><\/td>\nNone<\/td>\nPfd-3(high)<\/td>\n<\/tr>\n
SBC.PR.A<\/td>\nPfd-3<\/td>\n2.0+:1
8\/20<\/a><\/td>\n		Capital Unit Dividend Suspended<\/a><\/td>\nScraps<\/td>\nPfd-3(high)<\/td>\n<\/tr>\n
PDV.PR.A<\/td>\nPfd-3<\/td>\n1.8-:1
8\/14<\/a><\/td>\n		Downgraded<\/a><\/td>\nNone<\/td>\nPfd-3(high)<\/td>\n<\/tr>\n
BBO.PR.A<\/td>\nPfd-3(high)<\/td>\n2.1+:1
8\/20<\/a><\/td>\n		Downgraded<\/a><\/td>\nNone<\/td>\nPfd-2(low)<\/td>\n<\/tr>\n
LBS.PR.A<\/td>\nPfd-3(low)<\/td>\n1.8+:1
8\/20<\/a><\/td>\n		Downgraded<\/a><\/td>\nScraps<\/td>\nPfd-3<\/td>\n<\/tr>\n
RBS.PR.A<\/td>\n<\/td>\nN\/A<\/a><\/td>\nDividend Policy Revised<\/a><\/td>\nNone<\/td>\nPfd-3<\/td>\n<\/tr>\n
LCS.PR.A<\/td>\nPfd-4<\/td>\n1.5-:1
8\/20<\/a><\/td>\n		Downgraded<\/a><\/td>\nNone<\/td>\nPfd-3(low)<\/td>\n<\/tr>\n<\/table>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

DBRS has announced that it: has today taken a range of rating actions on 54 structured preferred shares issued by 49 split share companies and trusts (the Issuers). All the trends are now Stable. Each …<\/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-7675","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/7675","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=7675"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/7675\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}