DBRS Morningstar Assigns Rating of R-1 (high) to PSP Financial Inc.’s Euro Commercial Paper Notes

DBRS Limited (DBRS Morningstar) assigned a rating of R-1 (high) with a Stable trend to the Euro Commercial Paper Notes (the Euro CP) to be issued under the euro commercial paper program (ECP Program) of PSP Capital Inc. (PSP Capital or the Issuer). PSP Capital is a wholly owned subsidiary and principal funding vehicle of the Public Sector Pension Investment Board (PSP Investments; rated AAA with a Stable trend by DBRS Morningstar). The Euro CP will be unconditionally and irrevocably guaranteed by PSP Investments and will rank pari passu with all other present and future unsecured and unsubordinated indebtedness of PSP Capital. The maximum outstanding principal amount of the Euro CP, together with the aggregate principal amount of short-term commercial paper notes outstanding under the Issuer’s Canadian and U.S. commercial paper programs, shall not exceed at any time the Maximum Amount, which is currently set at CAD 12 billion.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors 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:
All figures are in Canadian dollars unless otherwise noted.

The principal methodologies applicable to the rating are North American Structured Finance Flow-Through Ratings (November 22, 2022; https://www.dbrsmorningstar.com/research/405619) and Rating Canadian Public Pension Funds & Related Exclusive Managers (April 26, 2022; https://www.dbrsmorningstar.com/research/395808).

Other methodologies referenced in this transaction are listed at the end of this press release.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

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 rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the rating process for this rating action.

DBRS Morningstar had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

This is a solicited credit rating.

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The rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

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