On June 11, 2014, Moody’s Investors Service changed the outlook of the seven largest Canadian banks from stable to negative and confirmed each of their long-term ratings.  Moody’s stated that the action was taken in response to previously announced plans of the Canadian government to implement a “bail-in” regime for Canada.  In Moody’s view, the balance of risks for senior debt holders and uninsured depositors of Canadian banks “has shifted to the downside.”

This rating action by Moddy’s has not affected the rating of any outstanding covered bonds issued by the banks.  The current long-term ratings of the banks by Moody’s range from Aa3 to Aa1.