DBRS Morningstar Downgrades Brompton Oil Split Corp. Preferred Shares to D

DBRS Limited (DBRS Morningstar) downgraded the rating of the Preferred Shares issued by Brompton Oil Split Corp. (the Company) to D from Pfd–5 (low). Following the stock market sell-off in response to the world-wide spread of Coronavirus Disease (COVID-19) and various geopolitical news, the Preferred Shares experienced a substantial decline in downside protection. The insufficient amount of downside protection resulted in partial principal loss for the Preferred Shareholders during the March 31, 2020, redemption (initial Maturity Date) where each Preferred Share was redeemed at $4.77 compared with the original $10.00 invested. Because some of the Preferred Shareholders did not receive the full principal amount invested in accordance with the initial terms of the transaction, DBRS Morningstar downgraded its rating of the Preferred Shares issued by the Company to D.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Notes:

All figures are in Canadian dollars unless otherwise noted.

The principal methodology is Rating Canadian Split Share Companies and Trusts, which can be found on dbrsmorningstar.com under Methodologies & Criteria.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrsmorningstar.com.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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