DBRS Assigns Provisional Rating to RBC’s Non-Viability Contingent Capital Subordinated Debt of A (low), Stable

DBRS has today assigned a provisional rating to Royal Bank of Canada’s (RBC or the Bank) Series 16 Medium Term Notes (Subordinated Indebtedness) (NVCC Sub Debt Series 16 or Series 16) of A (low) with a Stable trend.

DBRS assigned the NVCC Sub Debt Series 16 a rating equal to the Bank’s intrinsic assessment less three rating notches because the Series 16 has only the Office of the Superintendent of Financial Institutions (OSFI) required non-viable contingent capital (NVCC) triggers and no additional triggers. Furthermore, in the event of a conversion to common shares, the NVCC Sub Debt Series 16 has a potential for recovery that is sufficiently better than RBC’s existing NVCC Preferred Shares to allow for a differentiation in the Series 16 rating relative to the NVCC Preferred Shares rating. Please see DBRS press release “DBRS Provides Guidance on Canadian Bank Non-Viability Contingent Capital Ratings” issued January 10, 2014, for more details.

The rating is consistent with DBRS’s criteria, titled, “Criteria: Rating Bank Capital Securities – Subordinated, Hybrid, Preferred & Contingent Capital Securities.”

For more information on DBRS’s methodologies and criteria or the banking industry, visit www.dbrs.com or contact us at info@dbrs.com.

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.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodology is Rating Bank Capital Securities – Subordinated, Hybrid, Preferred & Contingent Capital Securities (December 2013), which can be found on our website under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.