DBRS Morningstar Confirms Ratings of Canadian Agents of the Crown at AAA

DBRS Limited (DBRS Morningstar) confirmed the AAA long-term ratings and R-1 (high) short-term ratings of the following Canadian Agents of the Crown: Business Development Bank of Canada, Export Development Canada and Farm Credit Canada. DBRS also confirmed the AAA long-term rating of Canada Post Corporation. All trends are Stable. The rating actions follow the confirmation of the Government of Canada’s AAA long-term ratings and R-1 (high) short-term ratings on October 11, 2019.

At the same time, DBRS Morningstar discontinued Canada Mortgage and Housing Corporation’s (CMHC) Commercial Paper, All Foreign Currency Securities and NHA Mtge-Backed Secs., S.T. ratings. Since 2008, CMHC no longer issues debt in the capital markets and borrows directly from the federal government. All directly issued debt of CMHC has been repaid. DBRS Morningstar confirmed CMHC’s All Debt Securities, Cdn Currency and NHA Mortgage-Backed Securities, LT ratings at AAA with Stable trends. These ratings are being maintained, as they are used as inputs for Canada Mortgage Bonds issued by Canada Housing Trust™ No. 1 and National Housing Act Mortgage-Backed Securities, both rated by DBRS Morningstar.

RATING DRIVERS
Although not anticipated, a change in legislation or ownership affecting the Agent of the Crown status of any of the above-mentioned entities without offsetting support for outstanding debt from the Government of Canada would negatively affect the ratings. Furthermore, a downgrade of the Government of Canada’s ratings would have an equal impact on the ratings of the above-mentioned entities.

Notes:
The principal methodology is Global Methodology for Government Related Entities, which can be found on dbrs.com under Methodologies & Criteria.

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 [email protected].

The ratings of Business Development Bank of Canada, CMHC, Export Development Canada and Farm Credit Canada were not initiated at the request of the rated entities.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of Canada Post Corporation or its related entities in connection with this rating action. DBRS Morningstar did not have access to the accounts and other relevant internal documents of Business Development Bank of Canada, CMHC, Export Development Canada and Farm Credit Canada in connection with this rating action.

The full report providing additional analytical detail for Canada Post Corporation is available by clicking on the link under Related Documents below or by contacting us at [email protected].

For more information on this credit or on this industry, visit www.dbrs.com or contact us at [email protected].

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