S&P affirms Royal Office

Standard & Poor's said it affirmed the AAA senior secured debt rating on Royal Office Finance LP.

The outlook is stable.

The rating reflects the creditworthiness of Public Works and Government Services Canada and the federal government, S&P said.

The ratings also consider the certainty of a rent stream fixed for 25 years, triple net leases with limited set-off and termination rights and a minimum 1x debt service cover through the 25-year term, the agency said.

S&P said it believes the risk associated with refinancing C$425 million at term-end and a minor amount of appropriation risk somewhat counterbalances these risks.

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