PrefBlog

DBRS has announced that it has:

changed the trend to Positive from Stable on all the long- and short-term ratings of Laurentian Bank of Canada (Laurentian or the Bank).
…
Further positive rating actions will be contingent upon Laurentian’s ability to sustainably grow internal capital demonstrated through various profitability measures as a result of core businesses and further cost efficiencies, while maintaining conservative credit and financial risk profiles.

Still a Pfd-3 issue, but those who wish to play the credit-anticipation game might consider this news of interest (only LB.PR.E would be appropriate for this! LB.PR.D is more in the nature of a short-term investment!). S&P continues to rate the issues “P-3(high)”.

Laurentian has eschewed “Innovative Tier-1 Capital” in its financing; preferred shares are its sole source of non-equity Tier-1 Capital, amounting to 22.2% of the total. It has good-quality ratios: The tier 1 ratio is 10.3% and the Total Capital Ratio is 12.4%, according to the 2006 Financials.

This entry was posted on Friday, June 15th, 2007 at 11:51 am and is filed under Issue Comments, Regulatory Capital. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.