Canadian Banks’ Rating Outlooks Downgraded to Negative by S&P

Canada’s six biggest banks including Toronto-Dominion Bank (TD) and Royal Bank of Canada had their outlooks cut to negative from stable by Standard & Poor’s because of regulatory changes that could affect bondholders.

“The outlook revision reflects our expectation of reduced potential for extraordinary government support arising from implementation of the proposed new elements of the resolution framework for Canadian banks,” Tom Connell, an S&P credit analyst, said in a statement today.

The other banks affected are Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Bank of Montreal (BMO) and National Bank of Canada (NA), according to the statement.

To contact the reporter on this story: Steven Crabill in New York at

To contact the editor responsible for this story: Steven Crabill at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.