New Brunswick (F-M) Project Company Inc.: Rating Report

DBRS Limited (DBRS) confirmed its ratings on the Highway Bonds and the Tranche A and Tranche B Senior Toll-Based Debt (collectively, the Senior Debt) of New Brunswick (F-M) Project Company Inc. (NBFM or the Company) at A (high). DBRS also changed the trends on all ratings to Stable from Negative following the confirmation and trend change of the ratings of the Province of New Brunswick (the Province) at A (high), Stable on April 18, 2019. The ratings on the Senior Debt are a flow-through of the long-term rating of the Province, as the principal and interest payments on the Senior Debt are funded directly by the New Brunswick Highway Corporation (NBHC), a provincial Crown agent. Although the transaction is structured as a public-private partnership (PPP), revenue available to service the Senior Debt is not subject to traffic volumes or abatement for the Company’s performance and continues in the event the route is unavailable. Debt servicing also survives termination of the Company under the Project Agreement.