DBRS Morningstar Discontinues Ratings on Nova Scotia Municipal Finance Corporation Following Dissolution

DBRS Limited (DBRS Morningstar) has discontinued its Guaranteed Long-Term Debt and Guaranteed Short-Term Debt ratings on the Nova Scotia Municipal Finance Corporation (NSMFC). Effective December 1, 2022, the Province of Nova Scotia (the Province; rated A (high) and R-1 (middle) with Stable trends by DBRS Morningstar) dissolved NSMFC and rolled it into the Department of Finance and Treasury Board. As a result, all liabilities, including contracts, obligations, and debts of NSMFC have been transferred to and assumed by the Crown in right of the Province.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.

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 (May 17, 2022).

Notes:
The principal methodology applicable to the ratings is DBRS Morningstar Criteria: Guarantees and Other Forms of Support (April 4, 2022; https://www.dbrsmorningstar.com/research/394683).

A description of how DBRS Morningstar analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/397223.

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.

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.

Information regarding DBRS Morningstar ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com or contact us at [email protected].

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