DBRS Rates CDP Financial Inc.’s New Euro-CP Program at R-1 (high) and Notes CP Limit Increase (anglais seulement)
DBRS has today assigned a rating of R-1 (high), with a Stable trend, to the new eurocommercial paper program of CDP Financial Inc. The notes, which will be issued in London in multiple currencies, will be guaranteed by the Caisse de dépôt et placement du Québec (the Caisse) and will rank pari passu with all present and future unsubordinated and unsecured indebtedness, subject to such exceptions as may from time to time exist under applicable law. Proceeds will be used primarily to finance European investments, providing a natural hedge against currency risk associated to those investments.
DBRS also notes that CDP Financial Inc. has increased the combined limit for its Canadian and European Commercial Paper programs from $5 billion to $7 billion effective March 2, 2007. The limit increase was expected by DBRS and remains consistent with the gross debt limit of 7.5% of net assets maintained by the Caisse, which is rated AAA by DBRS and unconditionally guarantees all of CDP Financial Inc.’s debt.
No undue pressure is expected on the credit profile of the Caisse as a result of the limit increase. As a result, CDP Financial Inc.’s short- and long-term ratings of R-1 (high) and AAA, respectively, continue to reflect the Caisse’s strong credit fundamentals, including a high and steadily growing level of unencumbered assets, a solid liquidity position and continued solid investment returns.
Note: All figures are in Canadian dollars unless otherwise noted.
Eric Beauchemin, CFA
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