Standard & Poor’s Ratings Services has affirmed its “BB+” long-term counterparty credit and senior unsecured debt ratings on Dundee Bancorp Inc., the parent company of Dundee Wealth Management Inc. It has revised the outlook to stable from negative.

S&P says the revision reflects the improvements seen in the operating earnings of Dundee’s wealth management division, the positive results that are being shown on the corporate portfolio, and the continued success with the integration of Canadian First Financial Group Inc. and StrategicNova Inc., which were acquired in 2002.

The outlook revision also reflects the success of Dundee Realty Corp.’s conversion to a REIT, which creates a steady stream of cash flow.

As well, the improving conditions of the global equity markets continue to provide an updraft to Dundee’s merchant banking and wealth management businesses.

S&P says the ratings on Dundee reflect the quality of the company’s equity base, the quality of its merchant banking portfolio; and the position of its wealth management franchise in the Canadian market.

It adds that the credit risks facing Dundee include its exposure to the equity markets through its real estate, merchant banking, and wealth management businesses, the high industry and single-name concentrations in corporate portfolio, the small (2%) market share held and lack of scale within the Canadian mutual fund sector, and the increasing level of competition in the wealth management sector, which continues to place pressure on asset growth and margins.

S&P ratings http://www2.standardandpoors.com/NASApp/cs/ContentServer?pagename=sp/Page/FixedIncomeRatingActionsPg