Press Release

DBRS: Ratings Impact of Updated Criteria on Bank Preferred and Preferred Hybrids in Canada

Banking Organizations

December 09, 2013

DBRS has today downgraded some ratings and upgraded others for preferred securities and securities that can convert to preferreds (preferred hybrid) at certain banks to reflect the updated “DBRS Criteria: Rating Bank Capital Securities – Subordinated, Hybrid, Preferred & Contingent Capital Securities,” which was released today.

These preferred share and preferred hybrid ratings are affected by a change in the updated criteria. In the previous criteria, these instruments were typically rated three to five notches below the issuer’s intrinsic assessment (IA), with some limited flexibility for less notching. This has been changed in the updated criteria to a standard three notches across all rating categories.

Rating changes for Canadian banks are listed below with the exception of Canadian Imperial Bank of Commerce Non-Cumulative Class A Preferred Shares, Series 26, 27 and 29, and Royal Bank of Canada Non-Cumulative First Preferred Shares, Series W, which, due to unique characteristics, are covered in separate press releases. Rating changes for securities in Europe and the United States have also been released separately. Other ratings for these issuers are unchanged. Importantly, these actions do not reflect any issuer-specific credit events. Related rating trends and Under Review placements are also unchanged.

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 principal methodology applicable is Rating Bank Capital Securities – Subordinated, Hybrid, Preferred & Contingent Capital Securities.

DBRS criteria and methodologies are publicly available on its website www.dbrs.com under Methodologies.

Ratings

BMO Capital Trust

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
09-Dec-13	Trust Capital Securities (BMO BOaTS)- Series D	A (low)	Stb	Downgraded	CA E
09-Dec-13	Trust Capital Securities - Series E (BMO BOaTS - Series E)	A (low)	Stb	Downgraded	CA E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
09-Dec-13	BMO Tier 1 Notes – Series A	A (low)	Stb	Downgraded	CA U E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
09-Dec-13	Cumulative Preferred Shares	Pfd-2 (high)	Stb	Downgraded	CA U E
09-Dec-13	Non-Cumulative Preferred Shares (Excluding Series 10)	Pfd-2 (high)	Stb	Downgraded	CA U E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
09-Dec-13	Cumulative Preferred Shares	Pfd-2 (high)	Stb	Downgraded	CA U E
09-Dec-13	Non-Cumulative Preferred Shares	Pfd-2 (high)	Stb	Downgraded	CA U E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
09-Dec-13	CIBC Tier 1 Notes	A (low)	Stb	Downgraded	CA U E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
09-Dec-13	Cumulative Preferred Shares	Pfd-2 (high)	Stb	Downgraded	CA U E
09-Dec-13	Non-Cumulative Preferred Shares (Excluding Series 26, Series 27 and Series 29)	Pfd-2 (high)	Stb	Downgraded	CA U E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
09-Dec-13	Cumulative Preferred Shares	Pfd-3	Pos	Upgraded	CA
09-Dec-13	Non-Cumulative Preferred Shares	Pfd-3	Pos	Upgraded	CA

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
09-Dec-13	Trust Capital Securities, Series 2013, 2015, 2008-1	A (low)	Stb	Downgraded	CA E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
09-Dec-13	Cumulative Preferred Shares	Pfd-1 (low)	Stb	Confirmed	CA U E
09-Dec-13	Non-Cumulative Preferred Shares (Excluding Series W)	Pfd-2 (high)	Stb	Downgraded	CA U E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
09-Dec-13	Scotiabank Trust Securities	A (low)	Stb	Downgraded	CA U E
09-Dec-13	Scotiabank Trust Securities - Series 2006-1 (Scotia BaTS - Series 2006-1)	A (low)	Stb	Downgraded	CA U E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
09-Dec-13	7.802% Scotiabank Tier 1 Securities–Series 2009-1 Due June 30, 2108 (Scotia BaTS III Series 2009-1)	A (low)	Stb	Downgraded	CA E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
09-Dec-13	TD Capital Trust II Securities (TD CaTS II)	A (low)	Stb	Downgraded	CA E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
09-Dec-13	TD Capital Trust III Securities (TD CaTS III)	A (low)	Stb	Downgraded	CA E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
09-Dec-13	TD Capital Trust IV Notes (TD CaTS IV) (Series 1)	A (low)	Stb	Downgraded	CA U E
09-Dec-13	TD Capital Trust IV Notes (TD CaTS IV) (Series 2)	A (low)	Stb	Downgraded	CA U E
09-Dec-13	TD Capital Trust IV Notes (TD CaTS IV) (Series 3)	A (low)	Stb	Downgraded	CA U E

Date Issued	Debt Rated	Rating	Trend	Action	Attributesi
09-Dec-13	Cumulative 1st Preferred Shares	Pfd-2 (high)	Stb	Downgraded	CA U E
09-Dec-13	Non-Cumulative 1st Preferred Shares (Excluding Series M and Series N)	Pfd-2 (high)	Stb	Downgraded	CA U E

BMO Capital Trust

Trust Capital Securities (BMO BOaTS)- Series D

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:A (low)
Trend:Stb
Rating Recovery:
Issued:CAE

Trust Capital Securities - Series E (BMO BOaTS - Series E)

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:A (low)
Trend:Stb
Rating Recovery:
Issued:CAE

BMO Capital Trust II

BMO Tier 1 Notes – Series A

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:A (low)
Trend:Stb
Rating Recovery:
Issued:CAUE

Bank of Montreal

Cumulative Preferred Shares

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:Pfd-2 (high)
Trend:Stb
Rating Recovery:
Issued:CAUE

Non-Cumulative Preferred Shares (Excluding Series 10)

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:Pfd-2 (high)
Trend:Stb
Rating Recovery:
Issued:CAUE

Bank of Nova Scotia, The

Cumulative Preferred Shares

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:Pfd-2 (high)
Trend:Stb
Rating Recovery:
Issued:CAUE

Non-Cumulative Preferred Shares

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:Pfd-2 (high)
Trend:Stb
Rating Recovery:
Issued:CAUE

CIBC Capital Trust

CIBC Tier 1 Notes

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:A (low)
Trend:Stb
Rating Recovery:
Issued:CAUE

Canadian Imperial Bank of Commerce

Cumulative Preferred Shares

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:Pfd-2 (high)
Trend:Stb
Rating Recovery:
Issued:CAUE

Non-Cumulative Preferred Shares (Excluding Series 26, Series 27 and Series 29)

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:Pfd-2 (high)
Trend:Stb
Rating Recovery:
Issued:CAUE

Laurentian Bank of Canada

Cumulative Preferred Shares

Date Issued:Dec 9, 2013
Rating Action:Upgraded
Ratings:Pfd-3
Trend:Pos
Rating Recovery:
Issued:CA

Non-Cumulative Preferred Shares

Date Issued:Dec 9, 2013
Rating Action:Upgraded
Ratings:Pfd-3
Trend:Pos
Rating Recovery:
Issued:CA

RBC Capital Trust

Trust Capital Securities, Series 2013, 2015, 2008-1

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:A (low)
Trend:Stb
Rating Recovery:
Issued:CAE

Royal Bank of Canada

Cumulative Preferred Shares

Date Issued:Dec 9, 2013
Rating Action:Confirmed
Ratings:Pfd-1 (low)
Trend:Stb
Rating Recovery:
Issued:CAUE

Non-Cumulative Preferred Shares (Excluding Series W)

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:Pfd-2 (high)
Trend:Stb
Rating Recovery:
Issued:CAUE

Scotiabank Capital Trust

Scotiabank Trust Securities

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:A (low)
Trend:Stb
Rating Recovery:
Issued:CAUE

Scotiabank Trust Securities - Series 2006-1 (Scotia BaTS - Series 2006-1)

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:A (low)
Trend:Stb
Rating Recovery:
Issued:CAUE

Scotiabank Tier 1 Trust

7.802% Scotiabank Tier 1 Securities–Series 2009-1 Due June 30, 2108 (Scotia BaTS III Series 2009-1)

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:A (low)
Trend:Stb
Rating Recovery:
Issued:CAE

TD Capital Trust II

TD Capital Trust II Securities (TD CaTS II)

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:A (low)
Trend:Stb
Rating Recovery:
Issued:CAE

TD Capital Trust III

TD Capital Trust III Securities (TD CaTS III)

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:A (low)
Trend:Stb
Rating Recovery:
Issued:CAE

TD Capital Trust IV

TD Capital Trust IV Notes (TD CaTS IV) (Series 1)

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:A (low)
Trend:Stb
Rating Recovery:
Issued:CAUE

TD Capital Trust IV Notes (TD CaTS IV) (Series 2)

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:A (low)
Trend:Stb
Rating Recovery:
Issued:CAUE

TD Capital Trust IV Notes (TD CaTS IV) (Series 3)

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:A (low)
Trend:Stb
Rating Recovery:
Issued:CAUE

Toronto-Dominion Bank, The

Cumulative 1st Preferred Shares

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:Pfd-2 (high)
Trend:Stb
Rating Recovery:
Issued:CAUE

Non-Cumulative 1st Preferred Shares (Excluding Series M and Series N)

Date Issued:Dec 9, 2013
Rating Action:Downgraded
Ratings:Pfd-2 (high)
Trend:Stb
Rating Recovery:
Issued:CAUE

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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