Canadian Imperial Bank of Commerce -- Moody's assigns Baa3 (hyb) to CIBC's non-viability contingent capital (NVCC) non-cumulative class A preferred shares, series 39

New York, June 02, 2014 -- Toronto, June 2, 2014 -- Moody's assigned a rating of Baa3 (hyb) to the Canadian Imperial Bank of Commerce's (CIBC; Aa3 Stable; C+/a2 stable) 3.9% CAD 400 million Basel III compliant NVCC rate reset preferred shares series 39. Proceeds from the issuance will be used for general corporate purposes. The NVCC preferred shares provide loss absorption as they are subject to automatic conversion into common shares, based on a predetermined conversion formula, at the point of non-viability, as defined by the Office of the Superintendent of Financial Institutions Canada (OSFI), subject to regulatory discretion. This incremental loss absorption feature is credit positive for holders of senior securities of CIBC, as a layer of loss absorbing securities will reduce the risk of losses incurred higher in the capital hierarchy if the bank gets into financial distress.

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