-DBRS keeps TD Split's preferred shares rating at Pfd-2.
BANKING AND CREDIT NEWS-November 22, 2011--DBRS keeps TD Split's preferred shares rating at Pfd-2(C)2011 M2 COMMUNICATIONS http://www.m2.com
22 November 2011 - DBRS on Monday maintained its rating on Canadian closed-end mutual fund TD Split Inc's (TSE:TDS.PR.B) Class C preferred shares, Series 1 at Pfd-2 (low).
TD Split issued 3.12 million Class C preferred shares at CAD10 (USD9.6/EUR7.1) apiece after it redeemed the Class B preferred shares on 15 November 2010. The final redemption date for the Class C shares is 15 November 2015.
The rating reflects the dependence of the downside protection provided to the holders of the preferred shares on the value of the shares in TD Split's portfolio, which consists only of shares in Toronto-Dominion Bank (TSE:TD). The rating is also constrained by the potential impact of volatile prices and reforms in the bank's dividend policies on the downside protection or dividend coverage.
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