DBRS Morningstar Assigns Provisional Rating of AA (low) to University of Ottawa’s Series C Debentures

DBRS Limited (DBRS Morningstar) assigned a provisional rating of AA (low) with a Stable trend to the University of Ottawa’s (uOttawa or the University) proposed Series C Senior Unsecured Debentures (Series C Debentures). The rating being assigned is based upon the rating on already-outstanding series of the above-mentioned securities.

The Series C Debentures will be direct senior unsecured obligations of the University and will rank equally with the previously issued Series A and Series B Debentures. The University will use the proceeds from the issuance to fund several capital projects.

The increased leverage will lead to some deterioration in uOttawa’s financial risk metrics; however, DBRS Morningstar believes the University’s credit profile will likely remain consistent with the AA (low) rating through the medium term. Nevertheless, a meaningful deterioration in operating results or other financial risks metrics could lead to a negative rating action.

For more information about uOttawa, please refer to DBRS Morningstar’s most recent rating report published on October 4, 2019.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodology is Rating Public Universities, which can be found on dbrs.com under Methodologies & Criteria.

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].

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