DBRS Publishes Updated General Corporate Preferred Share and Hybrid Criteria

DBRS published an updated version of DBRS Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers (the Criteria). This update supersedes the version previously published in December 2016.

While certain details have been clarified in this Criteria, DBRS deems the changes not to be material and has determined that no ratings are or will be changed as a result of these updates. The changes include a revision in the 25% and 50% equity treatment categories such that a minimum of two and five years, respectively, of interest deferability are required. In addition, the equity treatment of cumulative preferred shares will now be 75% as opposed to the previous 100% equity treatment. Non-cumulative preferred shares will continue to receive 100% equity treatment. These changes better reflect the equity-like benefits of such instruments. Other small editorial changes have also been made to improve clarity.

Notes:
DBRS rating definitions and the terms of use of such ratings are available at www.dbrs.com.

DBRS’s methodologies and criteria are available at www.dbrs.com or by contacting us at info@dbrs.com.