The Company invests in a portfolio of
The Company employs the Strathbridge Selective Overwriting proprietary options strategy to supplement the dividend income earned on the BNS Shares. The Company may also write cash-covered put options on the BNS Shares to generate additional returns. In addition, the Company may invest up to 10% of its net assets to purchase call options in respect of securities in which the Company is permitted to invest.
As of
The primary constraints on the rating are the Company's dependence on the value of the BNS Shares, the price volatility and concentration of the entire portfolio in the BNS Shares and the potential impact of changes in
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 dbrs.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@dbrs.com.
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.dbrs.com or contact us at info@dbrs.com.
Ratings
Date Issued Debt Rated Action Rating Trend Issued
i
US =
CA = Canada Issued, NRSRO
EU = EU Issued, NRSRO
E = EU endorsed
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-Participating
27-Nov-19 Preferred Shares Confirmed Pfd-3 -- CA
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