Moody's: Pearson notes A2

Moody's Investors Service said it assigned an A2 rating to C$95 million series E amortizing debenture to be issued by Pearson International Fuel Facilities Corp.

The outlook is stable.

The proceeds will be used to repay short-term debt, among other things.

The rating reflects the essential service provided by the company at Canada's largest airport, Lester B. Pearson International Airport, Moody's said.

The rating also considers the company's right to fully recover operating and financing costs from the member airlines, irrespective of demand, performance and availability, the agency said.

Credit weaknesses include the sum sufficient rate covenant and the fact that the company is not a party to some of the agreements in which various supportive provisions are documented, Moody's said.

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