DBRS Morningstar Confirms Ratings on Canada Post and Other Canadian Agents of the Crown at AAA

DBRS Limited (DBRS Morningstar) confirmed the AAA Long-Term Debt rating of Canada Post Corporation and the AAA All Debt Securities, Cdn Currency bsd on Gov’t Cda of Canada Mortgage and Housing Corporation. DBRS Morningstar also confirmed the AAA long-term ratings and R-1 (high) short-term ratings of the following Canadian Agents of the Crown: Business Development Bank of Canada and Export Development Canada. In addition, DBRS Morningstar confirmed the short-term rating of Farm Credit Canada at R-1 (high). All trends are Stable. The rating actions follow DBRS Morningstar’s confirmation of the Government of Canada’s AAA long-term ratings and R-1 (high) short-term ratings on March 9, 2023.

CREDIT RATING DRIVERS
A negative rating action could result from a change in legislation affecting the entities’ statuses as Agents of the Crown or from a downgrade of the Government of Canada’s ratings.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
Credit rating actions on the Government of Canada are likely to have an impact on this credit rating.

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/416784 (July 4, 2023).

Notes:
DBRS Morningstar applied the following principal methodology:
-- Global Methodology for Rating Government Related Entities https://www.dbrsmorningstar.com/research/410361 (February 28, 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.

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.

Canada Post Corporation’s credit rating was initiated at the request of the rated entity. Canada Post Corporation 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 Canada Post Corporation in connection with this rating action. The rating of Canada Post Corporation is a solicited credit rating.

The ratings of Business Development Bank of Canada, Canada Mortgage and Housing Corporation, Export Development Canada, and Farm Credit Canada were not initiated at the request of the rated entities. Business Development Bank of Canada, Canada Mortgage and Housing Corporation, Export Development Canada, and Farm Credit Canada did not participate in the rating process for this rating action. DBRS Morningstar did not have access to the accounts, management and other relevant internal documents of Business Development Bank of Canada, Canada Mortgage and Housing Corporation, Export Development Canada, and Farm Credit Canada in connection with this rating action. The ratings of Business Development Bank of Canada, Canada Mortgage and Housing Corporation, Export Development Canada, and Farm Credit Canada are unsolicited 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 credit ratings are under regular surveillance.

DBRS Morningstar will publish a full report on the Canada Post Corporation shortly that will provide additional analytical detail on this rating action. If you are interested in receiving this report, contact us at info@dbrsmorningstar.com.

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

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