Following the review of final documentation associated with the offering, DBRS Morningstar confirmed that the terms of the issuance are consistent with those reviewed at the time the provisional rating was assigned on
LBC issued
RATING DRIVERS
Over the longer term, a sustained improvement in the level of earnings and operating efficiency and the strengthening of capital buffers would result in an upgrade of ratings.
Conversely, material losses caused by operational difficulties as the Bank implements various organizational projects, sustained negative operating leverage, or significant losses in the loan portfolio as a result of unforeseen weaknesses in the risk management process would lead to a downgrade.
ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.
The Grid Summary Grades for LBC are as follows: Franchise Strength - Strong/Good; Earnings Power - Good; Risk Profile - Good; Funding & Liquidity - Strong/Good; and Capitalization - Good/Moderate.
Notes:
All figures are in Canadian dollars unless otherwise noted.
The principal methodology is the Global Methodology for
For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found on the issuer page at www.dbrsmorningstar.com.
The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.
Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar's outlooks and ratings are under regular surveillance.
For more information on this credit or on this industry, visit www.dbrsmorningstar.com.
Tel. +1 416 593-5577
Ratings
Date Issued Debt Rated Action Rating Trend Attributes
i
US = Lead Analyst based in USA
CA = Lead Analyst based in
EU = Lead Analyst based in EU
E = EU endorsed
U =
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-participating
07-May-21 NVCC Additional Tier 1 (AT1) Limited Recourse Capital Notes Provis.-Final BB (high) Stb CA
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