DBRS Holds Teleconference to Discuss Rating Actions on Canadian Banks’ Non-Cumulative Preferred Shares at 10:30 a.m. Today

DBRS will be holding a teleconference at 10.30 a.m. today to discuss its recent rating actions on Canadian banks’ non-cumulative preferred shares. Yesterday, DBRS placed various non-cumulative preferred shares of Bank of Montreal, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank Under Review with Negative Implications following the review of the Office of the Superintendent of Financial Institutions Canada (OSFI) Advisory on Non-Viability Contingent Capital, issued on August 16, 2011 (NVCC Advisory).

The rating actions follow the revision of how DBRS views the elevated risk of conversion in an environment where OSFI is encouraging Canadian banks to put in place resolution mechanisms, including the release of the NVCC Advisory, and the regulator’s ongoing push toward loss absorption from capital instruments, including convertible preferred securities, to generate common equity prior to the declaration of non-viability by OSFI. On conversion, there is the potential for the holder of this instrument to incur losses.

The teleconference, hosted by Brenda Lum, Managing Director, and Robert Long, Senior Vice President, will cover the key analytical considerations in the DBRS rating action and allow for a question-and-answer period.

To participate, please dial the appropriate numbers listed below five minutes before the 10:30 a.m. EDT start time.

CALL-IN DETAILS
Telephone: +1 416 340 2217 or toll-free at +1 866 696 5910
Pass Code: 2400087

A replay will be available immediately after the teleconference until September 1, 2011, at the following numbers:

REPLAY CALL-IN DETAILS
Available until 11:59 p.m. on September 1, 2011
Telephone: +1 905 694 9451 or toll-free at +1 800 408 3053
Pass Code: 5608110

DBRS will also publish a full transcript of the teleconference by the end of business on August 19, 2011. The transcript will be available at www.dbrs.com or by contacting us at info@dbrs.com

For more information on the rating actions, the press releases explaining the rationale behind the rating action are available by clicking the links on Related Research, which is on the right of your screen.