DBRS Confirms AAA (sf) Ratings of CBC Monetization Trust

DBRS Limited (DBRS) confirmed the AAA (sf) rating of the outstanding CBC Monetization Trust Notes (the Notes) issued by CBC Monetization Trust (the Trust).

The confirmation is part of DBRS’s continued effort to provide timely credit rating opinions and increased transparency to market participants and is based on the following considerations:

(1) The unconditional and irrevocable guarantee by Canadian Broadcasting Corporation (CBC) of full and timely payments as a result of the Trust under the receivables.

(2) The Support Agreement whereby CBC agreed to support the Trust for all operating costs and any tax liabilities.

(3) The status of CBC as an Agent of Her Majesty in Right of Canada means that CBC’s obligations under the CBC Guarantee and Support Agreement carry the full faith and credit of the Crown.

The Trust is a special-purpose vehicle established under the laws of Ontario pursuant to a Declaration of Trust. The Trust was established on December 23, 2009, to monetize four receivables related to previous sales and leases entered into by CBC, with respect to four parcels of land adjacent to the CBC Broadcasting Centre in downtown Toronto. The Notes pay a blend of principal and interest on a semi-annual basis in arrears, which commenced May 15, 2010, and continues until the maturity date of May 15, 2027. The initial issuance size was $135.7 million and amortized to $87.1 million as at December 2017.

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 under Related Documents or by contacting us at info@dbrs.com.

The principal methodologies are Master Canadian Structured Finance Surveillance Methodology and Structured Finance Flow-Through Ratings, which can be found on dbrs.com under Methodologies.

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

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