Morningstar DBRS Confirms Credit Ratings on Canada Post and Other Canadian Agents of the Crown at AAA

DBRS Limited (Morningstar DBRS) confirmed the AAA Long-Term Debt credit rating of Canada Post Corporation and the AAA All Debt Securities, Cdn Currency (bsd on Gov't Cda) credit rating of Canada Mortgage and Housing Corporation. Morningstar DBRS also confirmed the AAA long-term credit ratings and R-1 (high) short-term credit ratings of the following Canadian Agents of the Crown: Business Development Bank of Canada and Export Development Canada. In addition, Morningstar DBRS confirmed the short-term credit rating of Farm Credit Canada at R-1 (high). All trends are Stable. The credit rating actions follow Morningstar DBRS' confirmation of the Government of Canada's AAA long-term credit ratings and R-1 (high) short-term credit ratings on February 28, 2025.

CREDIT RATING RATIONALE
Credit ratings for the above noted Canadian agents of the Crown are aligned with those of the Government of Canada. Morningstar DBRS considers that Canadian Crown agents benefit from explicit support arrangements from the Canadian government. The credit ratings are underpinned by (1) the status of these entities as Agents of the Crown and wholly owned corporations of the Government of Canada; (2) the debt issued by Canadian Crown agents, which ranks equally in respect of payment out of the Consolidated Revenue Fund, with all other unsecured and unsubordinated securities issued by the Government of Canada; (3) the fact that borrowing activities are authorized by the Government of Canada; and (4) and Morningstar DBRS' belief that the Government of Canada has sufficient capacity and willingness to support the Crown agents. Morningstar DBRS views the Canadian government's commitment toward these Crown agents as credible, thanks to the strong institutional environment in Canada.

CREDIT RATING DRIVERS
A negative credit rating action could result from a change in legislation affecting the entities' statuses as Agents of the Crown or from a downgrade of the Government of Canada's credit ratings.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
Credit rating actions on the Government of Canada are likely to have an impact on this credit rating. There were no Environmental, Social, or Governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (May 16, 2025) https://dbrs.morningstar.com/research/454196

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

Morningstar DBRS applied the following principal methodology:

Global Methodology for Rating Government-Related Entities (June 2, 2025); https://dbrs.morningstar.com/research/455464

Morningstar DBRS credit ratings may use one or more sections of the Morningstar DBRS Global Corporate Criteria (February 3, 2025; https://dbrs.morningstar.com/research/447186) which covers, for example, topics such as holding companies and parent/subsidiary relationships, guarantees, recovery, and common adjustments to financial ratios.

The following methodology has also been applied:

Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (May 16, 2025)
https://dbrs.morningstar.com/research/454196

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

A description of how Morningstar DBRS analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://dbrs.morningstar.com/research/431153.

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 under Related Documents or by contacting us at info-DBRS@morningstar.com.

Canada Post Corporation's credit rating was initiated at the request of the rated entity. Canada Post Corporation or its related entities did participate in the rating process for this credit rating action. Morningstar DBRS had access to the accounts, management, and other relevant internal documents of Canada Post Corporation in connection with this credit rating action. The credit rating of Canada Post Corporation is a solicited credit rating.

The credit ratings of Business Development Bank of Canada, Canada Mortgage and Housing Corporation, Export Development Canada, and Farm Credit Canada were not initiated at the request of the rated entities. Business Development Bank of Canada, Canada Mortgage and Housing Corporation, Export Development Canada, and Farm Credit Canada did not participate in the credit rating process for these credit rating actions. Morningstar DBRS did not have access to the accounts, management, and other relevant internal documents of Business Development Bank of Canada, Canada Mortgage and Housing Corporation, Export Development Canada, and Farm Credit Canada in connection with these credit rating actions. The credit ratings of Business Development Bank of Canada, Canada Mortgage and Housing Corporation, Export Development Canada, and Farm Credit Canada are unsolicited credit ratings.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. Morningstar DBRS trends and credit ratings are under regular surveillance.

Information regarding Morningstar DBRS credit ratings, including definitions, policies, and methodologies, is available on https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

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