(The following statement was released by the rating agency)
Oct 10 - Fitch Ratings has assigned an 'AA-' long-term Issuer Default Rating (IDR) and 'F1+' short-term IDR to CIBC World Markets Plc (CIBCWM). CIBCWM is a wholly owned subsidiary of Canadian Imperial Bank of Commerce
which is rated 'AA-/F1+' by Fitch. The Rating Outlook is Stable. A complete list of ratings is at the end of this release.
RATING ACTION RATIONALE
CIBCWM's ratings are aligned with those of CIBC's, reflecting CIBC's demonstrated willingness to support its subsidiary. Central to Fitch's view that any support if needed would be forthcoming is CIBC's unconditional and irrevocable guarantee of all debts and other obligations of CIBCWM incurred prior to Oct. 31, 2017, whether matured or unmatured.
Furthermore, Fitch's assessment of support is also based on the core nature of CIBCWM's activities in the context of CIBC's global capital markets segment. While small in size and earnings contribution, CIBCWM is an essential part of CIBC's global wholesale banking business as its operates in London, one of the main global financial centres, as well as in continental Europe using the 'Single EU passport' under the Banking Co-ordination Directive.
CIBC's ability to support its subsidiary is reflected in its Viability Rating (VR) of 'AA-'. The Stable Outlook reflects the Outlook on CIBC's ratings.
RATING DRIVERS AND SENSITIVITIES
CIBCWM is a wholly owned subsidiary of CIBC whose IDRs are equalized with its parents' on the basis of support. As such, CIBCWM's IDRs are sensitive to the same factors that might drive a change in CIBC's IDRs.
Fitch has assigned the following ratings to CIBC World Markets Plc:
--Long-term IDR 'AA-', Outlook Stable; --Short-term IDR 'F1+'; --Support Rating '1'.
(Caryn Trokie, New York Ratings Unit)