DBRS Finalizes R-1 (high) Ratings on OTFT’s Short-Term Promissory Notes and U.S. Commercial Paper Notes

DBRS Limited (DBRS) has today finalized the provisional ratings of R-1 (high) on the Canadian Short-Term Promissory Notes and U.S. Commercial Paper Notes (collectively, the Notes) issued by the Ontario Teachers’ Finance Trust (OTFT or the Trust). The trends on all ratings are Stable. OTFT is a wholly owned financing subsidiary of Ontario Teachers’ Pension Plan Board (OTPP). The Notes will have an authorized aggregate limit of $10 billion in Canadian currency or the equivalent thereof in another currency.

The Notes are unconditionally and irrevocably guaranteed by OTPP and rank pari passu with all other present and future unsecured and unsubordinated obligations of the Trust. Net proceeds of the issuance will be used to make loans or other investments to members of the OTPP group and to retire the maturing debentures of the Cadillac Fairview Finance Trust, another OTPP financing subsidiary.

OTPP maintains a high degree of liquidity, with unencumbered highly liquid assets, as defined by DBRS, well in excess of the 1.5 times requirement set for the R-1 (high) rating outlined in “DBRS Criteria: Commercial Paper Liquidity Support for Non-Bank Issuers.”

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 methodologies are Rating Canadian Public Pension Funds & Related Exclusive Asset Managers, DBRS Criteria: Guarantees and Other Forms of Explicit Support and DBRS Criteria: Commercial Paper Liquidity Support for Non-Bank Issuers, which can be found on our website under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.