Morningstar DBRS Assigns Credit Ratings of AA, Stable, to TransLink’s $300 Million Series TL-11 Senior Unsecured Debentures

DBRS Limited (Morningstar DBRS) assigned a rating of AA with a Stable trend to South Coast British Columbia Transportation Authority’s (TransLink or the Authority) $300 million 4.60% Series TL-11 (Green) debentures maturing on June 14, 2055. The rating being assigned is based upon the already-outstanding rating on TransLink’s Senior Unsecured Debt, which Morningstar DBRS confirmed at AA with a Stable trend on October 11, 2023.

The Series TL-11 Green bonds rank pari passu with all other existing and future senior unsubordinated and unsecured obligations of the Authority and will be in the form of a fully registered Global Bond.

The proceeds of the issuance will be used to finance/refinance capital projects identified as eligible in accordance with the Authority’s Green Bond Framework. 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 following methodology has also been applied:
-- Morningstar DBRS Global Corporate Criteria (April 15, 2024),
https://dbrs.morningstar.com/research/431186

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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