DBRS Notes 407 International Inc.’s New Shelf Prospectus

DBRS notes today’s filing by 407 International Inc. (the Company) of a new short form shelf prospectus. The prospectus replaces the existing $1.4 billion shelf prospectus that matures in January 2010 and will allow the Company to issue, from time-to-time during the 25-month period that this shelf prospectus remains valid, secured medium-term notes in an aggregate amount of up to $2 billion, of which up to $1.355 billion will be Senior Bonds, up to $180 million will be Junior Bonds and up to $465 million will be Subordinated Bonds. The new shelf prospectus provides more borrowing room than the previous one, although DBRS notes that the Company does not plan to fully utilize it, as additional room has been incorporated in the borrowing capacity of the Senior, Junior and Subordinated Bonds for flexibility purposes.

Net proceeds from the debt issues are expected to be used to: (i) repay maturing indebtedness; (ii) finance the Company’s general operating, capital and funding requirements; and (iii) fund certain reserves to be maintained pursuant to the Master Trust Indenture and any supplement thereto.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Canadian Public-Private Partnerships, which can be found on our website under Methodologies.

This is a Corporate (Public Finance) rating.