Bank of Montreal's US$417 Million Senior Resolution Notes Rated 'A-'

TORONTO (S&P Global Ratings) Jan. 29, 2019--S&P Global Ratings today said it assigned its 'A-' issue-level rating to Bank of Montreal's (BMO; A+/Stable/A-1) senior resolution notes. On Jan. 24, BMO announced US$360 million (since then increased to US$417 million) of this bail-in-eligible senior debt, which will mature in two years. We understand the structure and its provisions meet regulatory requirements for inclusion in BMO's total loss-absorbing capacity (TLAC). The issue also meets our criteria for inclusion in our own measure of additional loss-absorbing capacity (ALAC), as we expect any future redemption would be, effectively, subject to regulatory approval. Our approach to rating BMO's senior resolution notes is consistent with our approach to rating senior subordinated notes being issued by peer

...TORONTO (S&P Global Ratings) Jan. 29, 2019--S&P Global Ratings today said it assigned its 'A-' issue-level rating to Bank of Montreal's (BMO; A+/Stable/A-1) senior resolution notes. On Jan. 24, BMO announced US$360 million (since then increased to US$417 million) of this bail-in-eligible senior debt, which will mature in two years. We understand the structure and its provisions meet regulatory requirements for inclusion in BMO's total loss-absorbing capacity (TLAC). The issue also meets our criteria for inclusion in our own measure of additional loss-absorbing capacity (ALAC), as we expect any future redemption would be, effectively, subject to regulatory approval. Our approach to rating BMO's senior resolution notes is consistent with our approach to rating senior subordinated notes being issued by peer banks in jurisdictions where we view resolution regimes as effective. This issuance comes after Canadian regulators finalized their approach to TLAC and convertible senior (bail-in) bank...

Ratings Action