407 International Inc.: Rating Report

DBRS Limited (DBRS Morningstar) confirmed 407 International Inc.’s (407 or the Company) Issuer Rating and Senior Bonds rating at “A,” Junior Bonds rating at A (low), and Subordinated Bonds rating at BBB. All trends remain Negative. The ratings continue to be supported by the long-term economic fundamentals of the catchment area and 407’s adequate liquidity position. The Negative trends mainly reflect the uncertainties related to 407's financial recovery, which depends on how successfully the Province of Ontario (Ontario or the Province; rated AA (low) with a Stable trend by DBRS Morningstar) reopens, how fast economic activities return to normal, and to what extent behaviour changes (e.g., working from home) of Highway 407 ETR users caused by the Coronavirus Disease (COVID-19) pandemic persist.