DBRS Morningstar Changes Trends on Multiple Public Issuers to Positive Following Province of Ontario’s Trend Change

DBRS Limited (DBRS Morningstar) changed the trend on the ratings of rated Ontario public hospitals, the MaRS Development Trust, and debt issued by the Ontario School Boards Financing Corporation to Positive from Stable. The trend change reflects DBRS Morningstar’s similar action (dated June 8, 2023) on the long-term ratings of the Province of Ontario.

Concurrently, DBRS Morningstar changed the trend on the University of Ontario Institute of Technology’s (OntarioTech or the University) Issuer Rating and Series A Senior Unsecured Debentures rating to Positive from Stable. The trend change on OntarioTech follows the Province of Ontario’s trend change, and DBRS Morningstar’s expectation of continued enrolment growth and declining debt for the University.

This change affects the following rated issuers:
-- Hamilton Health Sciences Corporation (HHSC), AA (low), Positive, Trend Change
-- Lakeridge Health (LH), AA (low), Positive, Trend Change
-- The Ottawa Hospital (TOH), AA (low), Positive, Trend Change
-- Scarborough Health Network (SHN), AA (low), Positive, Trend Change
-- University Health Network (UHN), AA (low), Positive, Trend Change
-- Windsor Regional Hospital (WRH), AA (low), Positive, Trend Change
-- The MaRS Development Trust, AA (low), Positive, Trend Change
-- Ontario School Boards Financing Corporation (OSBFC), AA (low), Positive, Trend Change
-- University of Ontario Institute of Technology, A (low), Positive, Trend Change

DBRS Morningstar has not changed the trend on the ratings of any other rated public universities at this time. The funding government’s rating is an important critical rating factor for public universities and hence, Ontario’s trend change is modestly credit positive for these universities; however, any rating actions are likely to be linked to changes in multiple critical rating and financial risk assessment factors rather than just the funding government’s rating alone. DBRS Morningstar will update individual university ratings through ongoing annual reviews, or as needed.

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

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/396929 (May 17, 2022).

Notes:
DBRS Morningstar applied the following principal methodology to the ratings of HHSC, LH, TOH, SHN, UHN, and WRH: Rating Canadian Public Hospitals (https://www.dbrsmorningstar.com/research/411435; March 21, 2023).

DBRS Morningstar applied the following criteria to the rating of the MaRS Development Trust: DBRS Morningstar Global Criteria: Guarantees and Other Forms of Support (https://www.dbrsmorningstar.com/research/411694; March 28, 2023).

DBRS Morningstar applied the following principal methodology to the debt ratings of OSBFC: Global Methodology for Rating Government Related Entities (https://www.dbrsmorningstar.com/research/410361; February 28, 2023).

DBRS Morningstar applied the following principal methodology to the ratings of OntarioTech: Rating Public Universities (https://www.dbrsmorningstar.com/research/414148; May 17, 2023).

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

A description of how DBRS Morningstar analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/397223/interplay-of-global-corporate-finance-rating-methodologies-when-analyzing-corporate-finance-transactions

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@dbrsmorningstar.com.

The ratings were initiated at the request of the rated entities.

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

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

The above are solicited credit ratings.

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

Information regarding DBRS Morningstar ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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