DBRS Ltd. has downgraded the preferred shares and innovative Tier 1 instrument ratings of all of the Canadian banks it rates, following changes in its rating methodology.

“The downgrades reflect the revision of DBRS’s views on external support as it relates to preferred shares and the elevated risk of non-payment of preferred dividends relative to the risk of default indicated by senior debt ratings,” it explains.

The downgrades do not reflect any specific credit event at any of the banks themselves or their related companies, it stresses.

As a result of the downgrades, the ratings have been removed from the “under review with negative implications” status, where they were placed on April 20. All other ratings for the Canadian banks are unaffected, and their rating trends also remain unchanged.

IE