DBRS Revises Trend on CIBC Mellon Trust Company to Positive from Stable

DBRS Limited (DBRS) revised the trend on all long-term and short-term ratings of CIBC Mellon Trust Company (CMT or the Company) to Positive from Stable. This follows the trend change on the long-term ratings of CMT’s most closely aligned parent, the Bank of New York Mellon (BNY Mellon; rated AA/R-1 (high) by DBRS), which was revised to Positive from Stable on November 14, 2018. DBRS confirmed all ratings of CMT on May 16, 2018, including the Company’s Long-Term Issuer Rating of AA (low) and Short-Term Issuer Rating of R-1 (middle). The Support Assessment (SA) of SA1 reflects the expectation of continued support from BNY Mellon.

The Positive trend primarily reflects BNY Mellon’s ownership of CMT and the change in the trend on BNY Mellon’s long-term ratings to Positive from Stable on November 14, 2018. As a supported rating with an SA1 designation, CMT’s ratings typically move in tandem with BNY Mellon’s Long-Term Issuer Rating. Although the Company is intrinsically strong, given its scale, deep service offering and technologically advanced operating and risk-management platforms, DBRS views CMT’s businesses as core to BNY Mellon and expects continued support from BNY Mellon. DBRS also anticipates support from Canadian Imperial Bank of Commerce (rated AA/R-1 (high) with a Stable trend by DBRS), CMT’s other parent. The one-notch differential in ratings between CMT and BNY Mellon reflects the lack of an explicit guarantee from BNY Mellon.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found on the issuer page at www.dbrs.com.

The applicable methodology is Global Methodology for Rating Banks and Banking Organisations (July 2018), which can be found on dbrs.com under Methodologies.

Lead Analyst: Robert Colangelo, Senior Vice President, Canadian Banking Financial Institutions
Rating Committee Chair: Michael Driscoll, Managing Director, Head of NA FIG

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

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