Fitch Rates City National Corporations $175MM Series D Non-Cumulative Perpetual Pfd Stock 'BB'

Fri Nov 1, 2013 1:58pm EDT

Related Topics

(The following statement was released by the rating agency) NEW YORK, November 01 (Fitch) Fitch Ratings assigns a 'BB' rating to City National Corporations $100 million non-cumulative perpetual preferred issuance. The coupon is set at 6.75% for 10 years. After 10 years, the issue is callable. If the issue is not called, it converts to a floating rate of LIBOR plus 4.052% KEY RATING DRIVERS - SUBORDINATED DEBT AND OTHER HYBRID SECURITIES City National Corporation's preferred stock is rated five notches below its viability rating in accordance with Fitch Ratings criteria 'Assessing and Rating Bank Subordinated and Hybrid Securities' dated Dec. 5, 2012. This reflects the loss-absorbing nature of the preferred stock as well as its non-cumulative or deferral feature. RATING SENSITIVITIES - SUBORDINATED DEBT AND OTHER HYBRID SECURITIES City National Corporation's preferred stock rating is sensitive to changes to the company's viability rating. Any change to the viability rating will impact the preferred stock rating. The rating actions are as follows: City National Corporation --Non-cumulative preferred at 'BB' Contact: Primary Analyst Jaymin Berg, CPA Analyst +1-212-908-0368 Fitch Ratings, Inc. One State Street Plaza New York, NY 10004 Secondary Analyst Julie Solar Senior Director +1-312-606-1472 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: Additional information is available at '' Applicable Criteria and Related Research: --'City National Corporation' (Oct. 21, 2013); --'U.S. Banking Quarterly Comment: 3Q13' (Oct 23, 2013) --'U.S. Banks: Liquidity and Deposit Funding' (Aug. 08, 2013) --'U.S. Banks: Interest Rate Risk (What Happens When Rates Rise) --'Global Financial Institutions Rating Criteria' --'Assessing and Rating Bank Subordinated and Hybrid Securities' Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.