DBRS Morningstar Upgrades McGill University Health Centre to AA (low), Changes Trend to Stable

DBRS Limited (DBRS Morningstar) upgraded McGill University Health Centre/Centre universitaire de santé McGill’s (MUHC) Series A Senior Unsecured Debentures rating to AA (low) from A (high) and changed the trend to Stable from Positive. The rating action follows the upgrade of the Province of Québec’s (Québec or the Province) Issuer Rating and Long-Term Debt rating to AA (low) from A (high) and trend change to Stable from Positive.

DBRS Morningstar assigns highly important hospitals, like MUHC, the same rating as their provincial governments, provided no material deficiencies or concerns have been identified. This practice reflects DBRS Morningstar’s view that there is the greatest likelihood of implicit support and thus the strongest linkage to the provincial credit profile for those hospitals that are fundamentally important to the provincial health-care system.

A further rating action is unlikely in the near to medium term. A positive or negative rating action will most likely be tied to changes in the Province’s Issuer Rating and Long-Term Debt rating. For more information about the upgrade of Québec’s Issuer Rating and Long-Term Debt rating, see the press release titled “DBRS Morningstar Upgrades Province of Québec to AA (low) on Continued Fiscal Outperformance and Improving Debt Metrics.”

Notes:
The principal methodology is Rating Canadian Public Hospitals, 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 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 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 [email protected].

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada