DBRS Morningstar Comments on CDP Financial Inc.’s U.S. Commercial Paper Notes Limit Increase

DBRS Limited (DBRS Morningstar) notes that CDP Financial Inc. has increased the limit on its U.S. Commercial Paper Notes program (U.S. Notes) to USD 10 billion, up from USD 5 billion. DBRS Morningstar notes that the limit increase does not adversely affect Caisse de dépôt et placement du Québec’s (La Caisse) long-term rating of AAA with a Stable trend, or the rating of the U.S. Notes (rated R-1 (high) with a Stable trend by DBRS Morningstar). CDP Financial Inc. is a wholly owned financing subsidiary of La Caisse. The debts issued by CDP Financial Inc. are unconditionally and irrevocably guaranteed by La Caisse and rank pari passu with all other present and future unsecured and unsubordinated indebtedness of CDP Financial Inc.

La Caisse continues to meet the DBRS Morningstar criteria for commercial paper (CP) liquidity support, as outlined in the Appendix to the DBRS Morningstar’s “Rating Canadian Public Pension Funds & Related Exclusive Asset Managers” methodology under the heading “Self-Liquidity for Canadian Public Pension Funds and Related Exclusive Asset Managers’ CP Programs.” La Caisse’s liquidity position remains sound, with sufficient same-day available funds equal to at least five business days of upcoming liabilities and discounted assets equal to the remaining maximum authorized CP program limit, which is consistent with DBRS Morningstar’s policy on backup liquidity support for pension plans and provides considerable short-term financial flexibility.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodologies are Rating Canadian Public Pension Funds & Related Exclusive Asset Managers.

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