DBRS Rates 407 International Inc. Debt Issue “A”

DBRS has today assigned a rating of “A” to the $350 million Series 11-A1 senior bonds (the Notes) of 407 International Inc. (407 or the Company).

The Notes are being issued from 407’s November 9, 2011, shelf prospectus. DBRS notes that holders of notes issued under the shelf will not have the benefit of the rating affirmation test, although the test continues to apply to all senior debt issued prior to 2010.

The intended use of the proceeds from the Notes will be (1) to repay the Company’s $300 million, 4.65% senior bonds, Series 09-A1, maturing on January 20, 2012, on maturity or redemption, as applicable; (2) to fund the Series Reserve Account in the Debt Service Reserve Fund (as both terms are defined in the Indenture) with respect to the Notes; and (3) for general corporate purposes. The financing is consistent with DBRS’s expectations incorporated in its July 26, 2011, confirmation of 407’s ratings.

The Notes will have a maturity date of November 15, 2041, and will rank pari passu with all other senior obligations of the Company. As a result, the rating is consistent with the ratings previously assigned by DBRS to the Company’s similarly ranked bonds outstanding.

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

The applicable methodology is Rating Canadian Public-Private Partnerships, which can be found on our website under Methodologies.