{"id":901,"date":"2007-06-08T17:13:04","date_gmt":"2007-06-08T21:13:04","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=901"},"modified":"2007-06-08T17:13:04","modified_gmt":"2007-06-08T21:13:04","slug":"bmo-counterparty-ratings-downgraded-by-s-preferred-share-rating-unchanged","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=901","title":{"rendered":"BMO Counterparty Ratings Downgraded by S&P; Preferred Share Rating Unchanged"},"content":{"rendered":"

S&P earlier placed BMO’s ratings under Credit-Watch Negative<\/a>, following revelations that management had not heard of the concept of “Separation of Function”.<\/p>\n

S&P has now:<\/p>\n

\n

lowered its short- and long-term counterparty credit ratings on Bank of Montreal (BMO; TSX: BMO) and its related subsidiaries to ‘A+\/A-1’ from ‘AA-\/A-1+’. At the same time, Standard & Poor’s removed the ratings from CreditWatch with negative implications, where they were placed May 17, 2007. The outlook is stable.<\/p>\n

The downgrade reflects the weaknesses Standard & Poor’s found within the bank’s risk management functions, the impact of competitive pressures on its domestic and U.S. personal and commercial (P&C) bank, the bank’s lower level of risk-adjusted earnings as compared with its North American peers, and smaller retail funding base which incrementally increased the bank’s liquidity risk position.<\/p>\n<\/blockquote>\n

BMO has the following preferred share issues outstanding: BMO.PR.G<\/a>, BMO.PR.H, BMO.PR.I<\/a>, BMO.PR.J<\/a> & BMO.PR.V.<\/p>\n

The preferred share ratings were left unchanged, but this is a major and permanent (well … long-lasting!) black eye for the bank – and unless management quickly reviews its internal controls, could be indicative of worse losses to come. Which will, of course, be blamed on Rogue Traders … not management.\n<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

S&P earlier placed BMO’s ratings under Credit-Watch Negative, following revelations that management had not heard of the concept of “Separation of Function”. S&P has now: lowered its short- and long-term counterparty credit ratings on Bank …<\/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-901","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/901","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=901"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/901\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}