(September 9 – 11:30 ET) – CBRS is reiterating its ratings on
CT Financial Services Inc. and its subsidiaries,
Canada Trustco Mortgage Co. and the Canada Trust Co.
These ratings have been on the Credit Watch List since August 3,
after the offer to buy CT from Toronto Dominion Bank. Although
the final terms of the deal aren’t known, and likely won’t be until
November, CBRS says that it is “satisfied that the underlying
creditworthiness will remain intact”.
CBRS says that after a deal it expects CT’s asset quality to remain
strong and that its cash flow will improve as synergies are realized.
The deal is scheduled to close in February 2000, pending regulatory
and ministerial approval, and assuming that British American Tobacco
PLC’s bid for CT’s parent Imasco Ltd. goes through.
-IE Staff
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