DBRS Morningstar Confirms Rating of AAA on PSP Capital Inc.’s 4.150% Senior Notes Due 2033 Following Reopening

DBRS Limited (DBRS Morningstar) confirmed the rating of AAA with a Stable trend on the 4.150% Senior Notes due 2033 (the Notes) issued by PSP Capital Inc. (PSP Capital), following the reopening of the Notes. PSP Capital reopened the Notes by issuing an additional $500 million with the same coupon rate (4.150%) and maturity date (June 1, 2033) as the initial issuance. The total amount of Notes outstanding after the reopening is $1.75 billion. The rating confirmation is based upon the existing rating assigned to PSP Capital’s Medium-Term Notes. PSP Capital is a wholly owned subsidiary and the principal financing vehicle of the Public Sector Pension Investment Board (PSP Investments; rated AAA with a Stable trend by DBRS Morningstar). The Notes are unconditionally and irrevocably guaranteed by PSP Investments and rank pari passu with all other present and future unsecured and unsubordinated obligations of PSP Capital.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance (ESG) 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:
All figures are in Canadian dollars unless otherwise noted.

The principal methodology applicable to the credit rating is North American Structured Finance Flow-Through Ratings (November 22, 2022; https://www.dbrsmorningstar.com/research/405619).

Other methodologies referenced in this transaction are listed at the end of this press release.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

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

Rating Canadian Public Pension Funds & Related Exclusive Asset Managers (April 27, 2023; https://www.dbrsmorningstar.com/research/413011).

A description of how DBRS Morningstar analyzes structured finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/410863.

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