Moody's rates Royal Bank of Canada bonds Aaa

Moody's said it assigned the rating of Aaa to the series CB9 covered bonds issued by Royal Bank of Canada.

The covered bonds are obligations of Royal Bank Canada and are also backed by a cover pool consisting of Canadian conventional residential mortgage loans.

Since the covered bondholders first have recourse to the issuer, S&P said it assumes that the issuer will continue to make all payments due to covered bond holders while it remains solvent. The agency said it uses the senior unsecured debt rating of the issuer as a means to determine the likelihood of default for a typical covered bond.

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