Press Release
DBRS Confirms Ratings on 38 Preferred Shares and Securities Issued by Split Share Vehicles
Split Shares & FundsDBRS has today confirmed the ratings for 38 structured preferred shares issued by 34 split share companies and trusts (the Issuers).
Each of the Issuers has invested in a portfolio of securities (the Portfolio) funded by issuing two classes of shares – 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 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. The amount of downside protection available to the Preferred Shares will fluctuate over time, based on changes in the market value of the Portfolio.
Canadian equity performance has been relatively stable in 2010 to date, following the extraordinary decline and rebound experienced during 2008 and 2009. The difference between the minimum and maximum values of the S&P/TSX Composite Index observed during 2010 is approximately 10% of the average level, compared with roughly 40% in 2009 and 60% in 2008. The increased stability in prices has contributed to today’s confirmation of the Preferred Share ratings.
DBRS will continue to closely monitor changes in the credit quality of the Preferred Shares. The timing of DBRS rating actions will generally follow the surveillance guidelines listed in DBRS’s split share methodology.
Notes:
The applicable methodology is Rating Canadian Split Share Companies and Trusts, which can be found on our website under Methodologies.
Ratings
5Banc Split Inc.
AllBanc Split Corp.
Allbanc Split Corp. II
BNS Split Corp. II
Big Bank Big Oil Split Corp.
Brompton Equity Split Corp.
Brompton Lifeco Split Corp.
Brompton Split Banc Corp.
CANADIAN Financials & Utilities Split Corp.
Canadian Banc Corp.
Canadian General Investments, Limited
Canadian Life Companies Split Corp.
Dividend 15 Split Corp.
Dividend 15 Split Corp. II
Dividend Growth Split Corp.
Financial 15 Split Corp.
First Asset CanBanc Split Corp.
Global 45 Split Corp.
Life & Banc Split Corp.
Mulvihill Premium Canadian Bank
ALL MORNINGSTAR DBRS RATINGS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AND ADDITIONAL INFORMATION REGARDING MORNINGSTAR DBRS RATINGS, INCLUDING DEFINITIONS, POLICIES, RATING SCALES AND METHODOLOGIES.
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Contacts
- Jamie Feehely
Managing Director, CDN Structured Finance - Global Structured Finance
+1 416 597 7312
jfeehely@dbrs.com