DBRS Rates 407 International Inc. Debt Issue “A” Stable

DBRS has today assigned a rating of “A” to the $200 million Series 13-A1 senior notes issue (the Notes) of 407 International Inc. (407 or the Company). The Notes have been issued from 407’s August 3, 2012, Shelf Prospectus.

The intended use of proceeds from the Notes will be to (1) to repay existing indebtedness under the Company’s bank facility, (2) to fund the Series Reserve Account in the Debt Service Reserve Fund (as both terms are defined in the Indenture) in respect of the Notes and (3) for general corporate purposes. The financing is consistent with DBRS’s expectations incorporated in its August 9, 2013, confirmation of 407’s ratings.

The Series 13-A1 Notes have a maturity date of October 7, 2053, and rank pari passu with all other senior obligations of the Company. As a result, the rating is consistent with the ratings previously assigned by DBRS to the Company’s similarly ranked bonds outstanding.

DBRS notes that there have been no material business-related or financial developments since the Company’s ratings were confirmed on August 9, 2013.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

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