S&P gives A to 407 International notes

S&P said it assigned a preliminary A rating to the proposed C$500 million senior secured notes due 2053 of 407 International Inc.

S&P also affirmed the A rating on the company’s senior debt, A- rating on the junior debt and BBB rating on its existing subordinated debt. The outlook is stable.

The company plans to use the proceeds of the new notes to fund expenditures, debt service payments, tax payments and general corporate purposes, including distributions.

“The rating action reflects 407's traffic, which outperformed our forecast in 2022 and has strongly rebounded in 2023, and that 407's credit metrics under our revised traffic and revenue forecast support additional leverage,” S&P said in a news release.

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