DBRS Places Certain Split Shares Under Review - Negative
DBRS has today placed the rating of certain structured preferred shares (Split Shares) Under Review with Negative Implications. Each of these split share companies has invested in a portfolio of securities (the Portfolio) funded by issuing two classes of shares – dividend-yielding preferred shares or securities (the Preferred Shares) and capital shares or units (the Capital Shares). The Preferred Shares benefit from a stable dividend yield and downside principal protection via the net asset value (NAV) of the Capital Shares against the percentage loss in the Portfolio’s NAV. Preferred Shares have experienced significant declines in downside protection during the past number of months due to volatility in the global equity markets. As a result, DBRS has placed the Preferred Shares listed below Under Review with Negative Implications. DBRS will take final rating action on these Preferred Shares once a longer-term trend has been established for the NAVs of the affected split share companies.
Note:
The applicable methodology is Split Share Issuers: A Performance Overview which can be found on our website under Methodologies.
This is a Structured Finance rating.
For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.
Ratings
| Issuer | Debt Rated | Rating Action | Rating | Trend | Notes | Published |
|---|---|---|---|---|---|---|
| AllBanc Split Corp. | Class B Preferred Shares | UR-Neg. | Pfd-2 (low) | -- | Dec 19, 2008 | |
| B Split II Corp. | Preferred Shares | UR-Neg. | Pfd-2 (low) | -- | Dec 19, 2008 | |
| Big Bank Big Oil Split Corp. | Class A, Preferred Shares | UR-Neg. | Pfd-2 | -- | Dec 19, 2008 | |
| BMONT Split Corp. | Preferred Shares | UR-Neg. | Pfd-2 (low) | -- | Dec 19, 2008 | |
| BNS Split Corp. II | Preferred Shares | UR-Neg. | Pfd-2 (low) | -- | Dec 19, 2008 | |
| Brompton Lifeco Split Corp. | Preferred Shares | UR-Neg. | Pfd-2 (low) | -- | Dec 19, 2008 | |
| Brompton Split Banc Corp. | Preferred Shares | UR-Neg. | Pfd-2 | -- | Dec 19, 2008 | |
| Energy Split Corp. II | Preferred Shares | UR-Neg. | Pfd-2 (low) | -- | Dec 19, 2008 | |
| Financial 15 Split Corp. | Preferred Shares | UR-Neg. | Pfd-2 | -- | Dec 19, 2008 | |
| Financial 15 Split Corp. II | Preferred Shares | UR-Neg. | Pfd-2 (low) | -- | Dec 19, 2008 | |
| Life & Banc Split Corp. | Preferred Shares | UR-Neg. | Pfd-2 | -- | Dec 19, 2008 | |
| Lifeco Split Corporation Inc. | Preferred Shares | UR-Neg. | Pfd-2 | -- | Dec 19, 2008 | |
| Multi Select Income Trust | Preferred Securities | UR-Neg. | Pfd-2 (low) | -- | Dec 19, 2008 | |
| Prime Dividend Corp | Preferred Shares | UR-Neg. | Pfd-2 | -- | Dec 19, 2008 | |
| Prime Rate Plus Corp. | Preferred Shares | UR-Neg. | Pfd-2 | -- | Dec 19, 2008 | |
| R Split III Corp. | Preferred Shares | UR-Neg. | Pfd-2 (low) | -- | Dec 19, 2008 | |
| Split REIT Opportunity Trust | Preferred Securities | UR-Neg. | Pfd-2 (low) | -- | Dec 19, 2008 | |
| TD Split Inc. | Class B Preferred Shares | UR-Neg. | Pfd-2 (low) | -- | Dec 19, 2008 |