DBRS Morningstar Confirms Ratings on Canada Post and Other Canadian Agents of the Crown at AAA

DBRS Limited (DBRS Morningstar) confirmed the AAA Long-Term Debt rating of Canada Post Corporation and the AAA All Debt Securities, Cdn Currency bsd on Gov’t Cda of Canada Mortgage and Housing Corporation. DBRS Morningstar also 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, and Export Development Canada. In addition, DBRS Morningstar confirmed the short-term rating of Farm Credit Canada, while the long-term ratings were discontinued as all long-term obligations have been repaid. All trends are Stable. The rating actions follow DBRS Morningstar’s confirmation of the Government of Canada’s AAA long-term ratings and R-1 (high) short-term ratings on March 11, 2022.

RATING DRIVERS
A negative rating action could result from a change in legislation affecting the entities’ statuses as Agents of the Crown or from a downgrade of the Government of Canada’s ratings.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
Rating actions on the Government of Canada are likely to have an impact on this rating. ESG factors that have a significant or relevant effect on the credit analysis of the Government of Canada are discussed separately at https://www.dbrsmorningstar.com/issuers/2100.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.

Notes:
The principal methodology is Global Methodology for Government Related Entities (May 6, 2022; https://www.dbrsmorningstar.com/research/396497), which can be found on dbrsmorningstar.com under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (May 17, 2022; https://www.dbrsmorningstar.com/research/396929).

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, Canada Mortgage and Housing Corporation, Export Development Canada, and Farm Credit Canada were not initiated at the request of the rated entities.

Canada Post Corporation or its related entities did participate in the rating process for this rating action. Business Development Bank of Canada, Canada Mortgage and Housing Corporation, Export Development Canada, and Farm Credit Canada did not 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 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, Canada Mortgage and Housing Corporation, Export Development Canada, and Farm Credit Canada in connection with this rating action.

The ratings of Business Development Bank of Canada, Canada Mortgage and Housing Corporation, Export Development Canada, and Farm Credit Canada are unsolicited credit ratings.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

DBRS Morningstar will publish a full report shortly that will provide additional analytical detail on this rating action. If you are interested in receiving this report, contact us at [email protected].

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

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577