Fitch Rates CIBC World Markets Plc 'AA-/F1+'; Outlook Stable

NEW YORK--(BUSINESS WIRE)-- 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 (CIBC) 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'.

Additional information is available on www.fitchratings.com. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Aug. 15, 2012);

--'Rating FI Subsidiaries and Holding Companies' (Aug. 10, 2012).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

Rating FI Subsidiaries and Holding Companies

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679209

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Fitch Ratings
Primary Analyst
Fabrice Toka, +1-212-368-0369
Senior Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Joseph Scott, +1-212-368-0624
Senior Director
or
Committee Chairperson
Christopher Wolfe, +1-212-908-0771
Managing Director
or
Media Relations
Brian Bertsch, +1-212-908-0549
brian.bertsch@fitchratings.com

Source: Fitch Ratings