British Columbia Ferry Services Inc.: Credit Rating Report

On December 6, 2024, we confirmed British Columbia Ferry Services Inc.'s Issuer Rating and Senior Secured Bonds credit rating at A (high) and changed the trends to Negative from Stable. The trend changes mainly reflect the materially higher operating expenses as well as capital expenditures and additional debts to be incurred during Performance Term 6 that are higher than our previous expectations. The deteriorating EBITDA margin and higher debt service payments during PT6 are expected to result in lower-than-expected debt service coverage ratios.