S&P Takes Canadian Covered Bond Programs Off CreditWatch Neg

Last month, in conjunction with Standard & Poor's Dec. 16, 2009 release of a major revision of its methodology for assessing asset-liability mismatch risk in covered bonds, the rating agency placed almost a hundred covered bond programs on CreditWatch Negative pending re-assessment.  Now, as of Jan. 18, S&P has removed three Canadian covered bond programs from CreditWatch Negative — reaffirming their AAA ratings and assigning stable outlooks.

The Canadian programs addressed are: Bank of Montreal Global Covered Bond Programme; Canadian Imperial Bank of Commerce Global Public Sector Covered Bond Programme; and Royal Bank of Canada Global Covered Bond Programme.

"Our rating actions follow a review of the most current asset and cash flow information provided to us as well as discussions with the issuers to  understand their planned issuance profile and expected levels of credit  enhancement," S&P stated.

As part of the same announcement, S&P removed two French covered bond programs from CreditWatch Negative.

To read the text of S&P's rating announcement, first log on (free) at www.standardandpoors.com, then click here.