DBRS Morningstar Assigns AAA Rating to CPPIB Capital Inc.’s USD 1.0 billion Series 26 Notes

DBRS Limited (DBRS Morningstar) assigned a rating of AAA with a Stable trend to the USD 1.0 billion Series 26 Notes (the Series 26 Notes) issued by CPPIB Capital Inc. (CPPIB Capital). The rating being assigned is based upon the existing rating assigned to CPPIB Capital’s Medium-Term Notes. The Series 26 Notes have a coupon rate of 0.375% payable semi-annually with a maturity date of July 29, 2025. CPPIB Capital is a wholly owned subsidiary and principal funding vehicle of Canada Pension Plan Investment Board (CPP Investments; rated AAA with a Stable trend by DBRS Morningstar). The Series 26 Notes are unconditionally and irrevocably guaranteed by CPP Investments and rank pari passu with all other present and future unsecured and unsubordinated indebtedness of CPPIB Capital.

The rating includes additional analysis on the expected performance as a result of the global efforts to contain the spread of the Coronavirus Disease (COVID-19) pandemic. The DBRS Morningstar Sovereigns group initially published its outlook on the coronavirus’ impact on key economic indicators for the 2020–22 time frame. The scenarios were updated on July 22, 2020. For details, see “Global Macroeconomic Scenarios: July Update” at https://www.dbrsmorningstar.com/research/364318/global-macroeconomic-scenarios-july-update. For the confirmed ratings, DBRS Morningstar considered impacts consistent with the moderate scenario in the referenced commentary in its analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodologies are Rating Canadian Public Pension Funds & Related Exclusive Asset Managers (April 27, 2020) and North American Structured Finance Flow-Through Ratings (January 2, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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