On Sept. 18, 2014, we published our global criteria for rating bank hybrid capital instruments (see "Bank Hybrid Capital And Nondeferrable Subordinated Debt Methodology And Assumptions"). Following the criteria publication, we are lowering our issue credit ratings on 68 Canadian bank hybrid capital instruments and removing the "Under Criteria Observation" designation from the ratings. We believe that banking regulators are adopting a tougher "bail-in" stance (where investors share in the cost of a government's rescue of a failing bank) toward hybrid capital instruments compared with our expectations in late 2011. This increases the possibility that banks might have to use hybrid capital instruments to a greater extent to absorb losses, and that regulators would be prepared to see such instruments
