Muskrat Falls/Labrador Transmission Assets Funding Trust and Labrador-Island Link Funding Trust: Rating Report

On October 5, 2020, DBRS Limited (DBRS Morningstar) confirmed the AAA ratings with Stable trends on the 2013 and 2017 Guaranteed Senior Bonds (together, the Bonds), totalling $7.9 billion, issued by Muskrat Falls/Labrador Transmission Assets (MFA/LTA) Funding Trust and Labrador-Island Link (LIL) Funding Trust (together, the Issuers). The ratings are based on two unconditional and irrevocable federal loan guarantees: the 2013 Federal Loan Guarantee (FLG1) and the 2017 Federal Loan Guarantee (FLG2; together with FLG1, the Guarantee) of substantially similar nature provided by the Government of Canada (Canada or the Guarantor). This rating action follows DBRS Morningstar’s confirmation of Canada’s sovereign rating at AAA with a Stable trend on September 22, 2020 (see DBRS Morningstar’s related press release dated September 22, 2020).