DBRS Morningstar Assigns Rating of AAA to PSP Capital Inc.’s Series 14 Medium-Term Notes

DBRS Limited (DBRS Morningstar) assigned a rating of AAA with a Stable trend to the Series 14 Medium-Term Notes (the Notes) issued by PSP Capital Inc. (PSP Capital). The rating assigned is based upon the existing rating assigned to PSP Capital’s Medium Term Notes. The $1.0 billion Notes have a coupon rate of 1.5% and a maturity date of March 15, 2028. PSP Capital is a wholly owned subsidiary and the principal financing vehicle of the Public Sector Pension Investment Board (PSPIB). The Notes are unconditionally and irrevocably guaranteed by the PSPIB and rank pari passu with all other present and future unsecured and unsubordinated obligations of PSP 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 January 28, 2021. For details, see “Global Macroeconomic Scenarios: January Update” at https://www.dbrsmorningstar.com/research/372842/global-macroeconomic-scenarios-january-2021-update.

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/373262.

Notes:
All figures are in Canadian 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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