Morningstar DBRS Assigns Credit Ratings of AA (low) with Stable Trends to First Nations Finance Authority’s $452 Million Senior Secured Bonds

DBRS Limited (Morningstar DBRS) assigned a rating of AA (low) with a Stable trend to First Nations Finance Authority’s (FNFA) $452.0 million reopening of its 4.10% senior secured bonds (Series 2024-1) maturing on June 1, 2034. The rating being assigned is based on the credit ratings of other already-outstanding Long-Term Debt, which Morningstar DBRS assigned at AA (low) with a Stable trend on October 4, 2023.

The bonds rank pari-passu with all other bonds issued under the Master Trust Indenture (dated February 23, 2016), including Series 2024-1 bonds issued pursuant to the Eleventh Supplemental Indenture.

FNFA will use issuance proceeds to finance loans to its growing borrowing member pool. The new issue and use of proceeds are consistent with DBRS Morningstar’s expectations at the time of its most recent review.

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

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at (January 23, 2024) https://dbrs.morningstar.com/research/427030.

Notes:
All figures are in Canadian dollars, unless otherwise noted.

Morningstar DBRS applied the following principal methodology:
-- Rating Canadian Municipal Governments (15, April, 2024), https://dbrs.morningstar.com/research/431207/

Morningstar DBRS credit ratings may use of one or more sections of the Morningstar DBRS Global Corporate Criteria (15, April, 2024), https://dbrs.morningstar.com/research/431186, which covers, for example, topics such as holding companies and parent/subsidiary relationships, guarantees, recovery, and common adjustments to financial ratios.

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

A description of how Morningstar DBRS analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://dbrs.morningstar.com/research/431153.

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 info-DBRS@morningstar.com.

The credit rating was initiated at the request of the rated entity.

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

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

This is a solicited credit rating.

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

Information regarding Morningstar DBRS credit ratings, including definitions, policies, and methodologies, is available on dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

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