The Globe and Mail reports in its Saturday edition Canada's six biggest banks including TD Bank 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.
A Bloomberg dispatch to The Globe quotes Tom Connell, an S&P credit analyst, as saying in a statement Friday, "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."
The other banks affected are Bank of Nova Scotia, CIBC, Bank of Montreal and National Bank of Canada.
© 2024 Canjex Publishing Ltd. All rights reserved.