Bank of Montreal's Additional Tier 1 Structure Limited Recourse Capital Notes Rated 'BBB-'

TORONTO (S&P Global Ratings) Sept. 8, 2020--S&P Global Ratings today said it assigned its 'BBB-' issue-level rating to Bank of Montreal's (BMO; A+/Stable/A-1) Canadian dollar-denominated Additional Tier I Structure Limited Recourse Capital Notes. Under this structure, a trust has been established where the bank is the sole beneficiary. Investors of the notes will have recourse only to the assets held by the trust. At the same time, S&P Global Ratings assigned its 'BBB-' issue-level rating to the bank's preferred shares, which will reside in the trust. In accordance with our criteria for hybrid and other capital instruments, the rating reflects our analysis of the proposed instrument, and our assessment of BMO's 'a' stand-alone credit profile (SACP). The 'BBB-' issue rating

...September 8, 2020 TORONTO (S&P Global Ratings) Sept. 8, 2020--S&P Global Ratings today said it assigned its '###-' issue-level rating to Bank of Montreal's (BMO; A+/Stable/A-1) Canadian dollar-denominated Additional Tier I Structure Limited Recourse Capital Notes. Under this structure, a trust has been established where the bank is the sole beneficiary. Investors of the notes will have recourse only to the assets held by the trust. At the same time, S&P Global Ratings assigned its '###-' issue-level rating to the bank's preferred shares, which will reside in the trust. In accordance with our criteria for hybrid and other capital instruments, the rating reflects our analysis of the proposed instrument, and our assessment of BMO's 'a' stand-alone credit profile (SACP). The '###-' issue rating is four notches below BMO's SACP, incorporating: - A deduction of one notch, the minimum downward notching from the SACP under our criteria for subordinated debt, reflecting contractual subordination;...

Ratings Action