DBRS Morningstar-Rated Canadian Public Pension Funds Hold No Material Exposures to Credit Suisse, SVB, or Signature Bank

DBRS Morningstar published a commentary that focuses on DBRS Morningstar-rated Canadian public pension funds and related exclusive asset managers’ (the Pension Funds) direct and indirect exposure to the banks at the centre of the current banking turmoil to assess any potential credit impact.

Key highlights include the following:

-- The Pension Funds do not have material direct or indirect exposures to Credit Suisse, Silicon Valley Bank, or Signature Bank.

-- The Pension Funds continue to have ample liquidity to meet all their financial obligations, including potential capital calls, under different stress scenarios. They have access to multiple liquidity sources that continue to be available to them, including access to short-term commercial paper and term debt markets.

-- The Pension Funds continue to have an adequate cushion against any potential claims arising from the guarantees provided to the notes issued by their financing subsidiaries, with recourse debt as a percentage of net assets ranging from 5.7% to 9.8%.

-- The Pension Funds continue to be well positioned to meet short-term liquidity needs and longer-term liability obligations supported by strong governance structures and long-term investment horizons.