DBRS Confirms New Brunswick (F-M) Project Company Inc. at A (high)

Following the confirmation of the ratings on the Province of New Brunswick (the Province) on June 18, 2015, DBRS Limited (DBRS) has today confirmed its ratings on the Highway Bonds and the Tranche A and Tranche B Senior Toll-Based Debt (collectively, the Senior Debt) of New Brunswick (F-M) Project Company Inc. (NBFM or the Company) at A (high). All trends are Stable. The ratings on the Senior Debt are flow-throughs of the long-term rating of the Province as the principal and interest payments on the Senior Debt are funded directly by the New Brunswick Highway Corporation (NBHC), a provincial Crown agent. Although the transaction is structured as a public-private partnership (PPP), revenue available to service the Senior Debt is not subject to traffic volumes or abatement for the Company’s performance and continues in the event that the route is unavailable. Debt servicing also survives termination of the Company under the Project Agreement.

NBFM is a not-for-profit corporation charged with the operation of a four-lane highway (the Highway) between Fredericton and Moncton under a PPP structure. The Company has entered into a 30-year concession from NBHC to design, build, finance, operate, rehabilitate and maintain the Highway.

Notes:
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

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

The full report providing additional analytical detail is available by clicking on the link under Related Research at the right of the screen or by contacting us at info@dbrs.com.