DBRS Confirms City of Calgary’s CP Rating at R-1 (high), Stable, Following Activation of Program

DBRS Limited (DBRS) has today confirmed the City of Calgary’s (the City) commercial paper (CP) rating at R-1 (high) with a Stable trend, following the increase in the authorized program limit to $200 million from $140 million and the activation of the CP program. The City intends to begin utilizing the CP program in April 2017 for cash management purposes.

DBRS notes that the City’s CP program complies with the “DBRS Criteria: Commercial Paper Liquidity Support for Non-Bank Issuers” (March 22, 2017). DBRS notes that the City has stable and predictable cash flows, in the form of tax installment revenues received each month, and ample liquidity available in the form of cash and highly rated Canadian government bonds comfortably covering anticipated same-day CP maturities and total CP program outstandings. The City had $4.3 billion in cash and investments on hand as at December 31, 2016. The City also maintains an uncommitted demand line of credit with a limit of $60 million for overnight cash management purposes, with nil outstanding.

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 principal methodologies are Rating Canadian Municipal Governments and DBRS Criteria: Commercial Paper Liquidity Support for Non-Bank Issuers, which can be found on dbrs.com under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.