DBRS Assigns R-1 (low) and Pfd-3 (high) Ratings to Canadian Western Bank

DBRS has today assigned two new ratings to Canadian Western Bank (CWB): a Short-Term Instruments rating of R-1 (low) and a Non-Cumulative Preferred Shares rating of Pfd-3 (high) for CWB’s Non-Cumulative Five-Year Rate Reset Preferred Shares, Series 3, issued in March 2009. These new ratings supplement CWB’s existing A (low) Issuer Rating, Deposits & Senior Debt rating of A (low) and Subordinated Debt rating of BBB (high), all of which were last confirmed on October 9, 2012. The trend on all ratings is Stable.

The Short-Term Instruments rating has been assigned based primarily on CWB’s existing ratings and DBRS’s Rating Policy “Short-Term and Long-Term Rating Relationships,” available at www.dbrs.com.

The Non-Cumulative Preferred Shares rating was also assessed based on CWB’s existing ratings, including an intrinsic rating of A (low), using DBRS Criteria: Rating Bank Preferred Shares and Equivalent Hybrids (June 29, 2009) (the Criteria). While the Criteria would normally imply a four-notch differential between the intrinsic assessment and the preferred share rating, CWB’s Pfd-3 (high) rating is the equivalent of a three-notch differential. DBRS notes that the better-than-base notching is warranted, given CWB’s long demonstrated ability and willingness to pay all dividends and the lack of any history of reducing common dividends.

Notes:
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodologies are Global Methodology for Rating Banks and Banking Organisations (June 2012), DBRS Criteria: Rating Bank Preferred Shares and Equivalent Hybrids (June 2009) and DBRS Criteria: Intrinsic and Support Assessments (February 2009), which can be found on our website under Methodologies.