DBRS Assigns AA (low) Provisional Rating to York University’s Debentures Issue

DBRS has today assigned a provisional rating of AA (low) with a Stable trend to the proposed $100 million debentures issued by York University (the University). The 40-year debentures are senior obligations of the University and rank pari passu with all its other present and future unsecured and unsubordinated obligations. The rating is consistent with those previously assigned by DBRS to the University’s existing outstanding debentures. Net proceeds will be used to replenish cash resources used to internally finance capital projects that are either in progress or already completed and for general corporate purposes.

To DBRS’s knowledge, no material developments have occurred at the University since the most recent rating review. Additionally, the University is on track to meet budget targets for the current fiscal year, as enrolment has materialized in line with projections and spending discipline has been maintained. This debt was anticipated by DBRS at the time of the last rating review and factored into the rating of the University, as reflected in the DBRS’s report dated October 10, 2013. The report is available at www.dbrs.com or by contacting us at info@dbrs.com.

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

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