UPDATE 1-DBRS says Canada banks unchanged on AIG, Lehman

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TORONTO, Sept 19 (Reuters) - Credit rating agency DBRS said on Friday that there were no ratings implications after it reviewed the exposures of Canada's six largest banks to Lehman Brothers Holdings (LEHMQ.PK) and American International Group (AIG.N).

"While there are exposures at some of the large Canadian banks, the exposures are manageable relative to their respective earnings bases and capital ratios," DBRS said in a commentary.

The agency said it reviewed the exposures of Bank of Montreal (BMO.TO), Bank of Nova Scotia (BNS.TO), Canadian Imperial Bank of Commerce (CM.TO), National Bank of Canada (NA.TO), Royal Bank of Canada (RY.TO) and Toronto-Dominion Bank (TD.TO).

Insurance holding company AIG was bailed out by an emergency loan from the U.S. Federal Reserve this week, while Lehman Brothers Holdings, parent of the storied investment bank, sought bankruptcy protection.

In the latest jolt to markets, the U.S. government said it was crafting a sweeping multibillion-dollar plan to rescue the embattled U.S. financial sector.

Canadian financial stocks shot higher on Friday on the news, along with stocks in other sectors and markets around the world.

Authorities in the United States, Britain and other countries also slapped a temporary halt on short-selling financial services stocks. Short selling involves making a bet that a security will fall in value.

Earlier this week, Toronto-based DBRS said it had reviewed Canadian life insurance companies' exposures to Lehman and AIG securities. There were no ratings implications for the insurers either.

The three largest Canadian life insurers said they expect to take unspecified charges in the third quarter for these holdings, but large Canadian banks have not issued similar statements. (Reporting by Lynne Olver; Editing by Frank McGurty)