CI Financial Seeks Withdrawal of Credit Ratings from DBRS

CI Financial's Request to Morningstar DBRS

CI Financial Corp. (“CI”) has taken a significant step by requesting Morningstar DBRS to withdraw its issuer credit rating and debenture ratings. This decision is important as the company aims to align its financial evaluation methods more closely with its actual performance.

Concerns Regarding Ratings Methodology

The impetus behind CI’s request stems from concerns about the ratings methodology utilized by Morningstar DBRS. CI believes that the methodology, which emphasizes IFRS metrics, fails to fully consider essential adjustments that accurately reflect the company's financial condition and underlying results. This has led to substantial fluctuations in CI's leverage ratio, showing double-digit shifts over brief periods, which the company finds unsustainable.

Unsolicited Ratings and Company Direction

Following CI’s request, Morningstar DBRS communicated that it would continue to provide unsolicited ratings for the company. Such unsolicited ratings will solely rely on public information, emphasizing the disconnection between CI management and the rating agency. This new development indicates that CI is moving forward without direct engagement with Morningstar DBRS, focusing instead on how to best represent its financial standing independently.

About CI Financial Corp.

CI Financial Corp. is a diversified global asset and wealth management company. Operating primarily in Canada, the U.S., and Australia, CI has evolved since its inception in 1965. The organization has amassed impressive portfolio management skills and comprehensive wealth planning capabilities, managing approximately $511.3 billion in client assets as of mid-2024.

Core Segments of CI Financial

CI operates across three primary segments, which are fundamental to its business model:

• Asset Management: This segment includes CI Global Asset Management in Canada and GSFM in Australia, focusing on providing a wide range of asset management services.
• Canadian Wealth Management: CI’s operations in this segment encompass a variety of services including CI Assante Wealth Management, Aligned Capital Partners, CI Private Wealth, and several others dedicated to Canadian clients.
• U.S. Wealth Management: Through Corient Private Wealth, CI offers integrated wealth management solutions, specifically targeting ultra-high-net-worth and high-net-worth clients across the United States.

CI's Market Position and Future Outlook

Headquartered in Toronto and tradable on the TSX under the ticker CIX, CI Financial is poised for further growth. Despite the recent challenges with credit ratings, the company’s commitment to providing tailored wealth management solutions remains steadfast. CI continues to advance their strategies, focusing on enhancing their service offerings and responding to market needs.

For those looking to learn more about CI Financial, whether it's understanding their comprehensive product suite or exploring investment opportunities, the company's commitment to transparency can be seen through their strong customer relations and market presence.

Frequently Asked Questions

What triggered CI Financial's request to withdraw ratings?

CI Financial's decision was influenced by concerns over the ratings methodology employed by Morningstar DBRS, which did not account for necessary financial adjustments.

What are unsolicited ratings?

Unsolicited ratings are assessments made by credit rating agencies based solely on publicly available information without direct engagement from the rated company.

What are the main segments of CI Financial?

CI Financial operates in three key segments: Asset Management, Canadian Wealth Management, and U.S. Wealth Management.

How much client assets does CI Financial manage?

As of mid-2024, CI Financial manages approximately $511.3 billion in client assets, demonstrating robust growth and position in the market.

Where is CI Financial headquartered?

CI Financial is headquartered in Toronto, Canada, and is listed on the Toronto Stock Exchange under the ticker CIX.

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