DBRS Rates Senior Unsecured Debt Issue of SCBCTA (TransLink) at AA

DBRS has today assigned a rating of AA with a Stable trend to the new $150 million Senior Unsecured Debt issue of South Coast British Columbia Transportation Authority (TransLink or the Authority). The new issue has a 30.5-year maturity and ranks pari passu with all other existing and future senior obligations. The rating is consistent with those previously assigned by DBRS to the Authority’s existing senior unsecured debt. Net proceeds from the issue will primarily be used to finance capital expenditures, with approximately $35 million earmarked to refinance debt currently with the Municipal Finance Authority of British Columbia that will be maturing in the first half of 2014.

The new Senior Unsecured Debt issue remains in line with DBRS’s previous expectations for the 2013 fiscal year. However, based on TransLink’s new 2014 base plan and outlook, debt is now expected to peak at just over $3 billion from 2015 to 2017, above previous expectations of $2.9 billion by 2015. The revision reflects an increase in the provision for the Pattullo bridge refurbishment to approximately $300 million from $150 million. The Authority’s credit profile remains strongly supported by its taxing powers over an affluent and economically critical region, diversified revenue base, solid ridership outlook and sound governance structure.

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

The applicable methodology is Rating Canadian Municipal Governments, which can be found on our website under Methodologies.