DBRS rates OPB notes AA (high)

DBRS said it assigned a provisional rating of AA (high) to the proposed C$250 million series C debentures of OPB Finance Trust and confirmed the AA (high) ratings of the trust's outstanding series A debentures and series B debentures. The trends on the ratings are stable.

The issuer is a wholly owned subsidiary and principal financing vehicle of Ontario Pension Board.

The proceeds of the new debentures will be used to finance the fund's recent real estate transactions.

The agency said the ratings remain supported by OPB's exclusive mandate to manage the assets and administer the benefits of Ontario's Public Service Pension Plan, a history of prudent management and a high level of assets available to meet potential guarantee obligations.

However, DBRS said the plan's demographics are notably weaker than other large rated pension plans, which limit the ratings to their current level.

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