...February 4, 2025 TORONTO (S&P Global Ratings) Feb. 4, 2025--S&P Global Ratings today assigned its '##+' issue rating to National Bank of Canada's (NBC; A+/Stable/A-1) two nonviable contingent capital (NVCC) first preferred share issuances. We rate NVCC preferred shares four notches below the stand-alone credit profile (SACP) of a bank. NBC's SACP is 'a-'. The rating on the preferred shares reflects two notches for deferral and coupon nonpayment, and one each for subordination and risk of equity conversion. Following the closing of the acquisition of Canadian Western Bank (CWB) by NBC on Feb. 3, 2025, CWB intends to implement, effective Feb. 4, 2025, certain amendments previously approved by the holders of the outstanding CWB first preferred shares series 5 and series 9 (NVCC). NBC will exchange CWB's preferred shares for substantially equivalent NBC first preferred shares. NBC and CWB intend to amalgamate on March 1, 2025. We believe NBC is well positioned in a weaker credit environment...
