DBRS Rates FNFC after Conversion and Amalgamation from FNFIF

DBRS has today assigned a BBB rating with a Stable trend to the Senior Secured – Guaranteed Debt of First National Financial Corporation (FNFC) and has discontinued the rating of First National Financial Income Fund (FNFIF) as a result of the conversion to a corporate structure. FNFC has succeeded FNFIF as the public holding company of First National Financial LP (FNFLP).

The rating is based on a guarantee from FNFLP and an Intercreditor Agreement between Computershare Trust Company of Canada as the debenture trustee and the lenders under a credit facility among four Canadian chartered banks as lenders and FNFLP, as borrower and FNFC and its affiliates as guarantors (FNFLP’s Credit Facility).

DBRS maintains an Issuer Rating of BBB with a Stable trend on FNFLP. The Intercreditor Agreement ranks the indebtedness created under the debentures equally and ratably with the indebtedness created under FNFLP’s Credit Facility.

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

The applicable methodologies are the Global Methodology for Rating Banks and Banking Organisations and Rating Parent/Holding Companies and Their Subsidiaries, which can be found on the DBRS website under Methodologies. In applying the banking methodology, DBRS has allowed for the fact that the credit in question is not a bank.