Moody’s acts on Canadian Banks

Moody's Investors Service said it took various actions on the deposits, long-term debt and counterparty risk assessments of Toronto-Dominion Bank, Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and National Bank of Canada and their affiliates.

The outlooks were changed to stable from negative.

The agency also upgraded the banks' ratings for contractually convertible subordinated debt and assigned provisional ratings to the bail-in debt to be issued by the banks beginning Sept. 23.

Moody’s said the actions follow the introduction of a bank resolution framework in Canada.

The agency said that it formally designated Canada as an operational resolution regime (ORR) jurisdiction, where going-concern resolution is part of the public policy framework.

Going forward, Moody's said it will adopt the advanced loss given failure framework, which it applies to ORR jurisdictions, to evaluate Canadian banks' liabilities.

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