Moody's changes Omers outlook to stable

Moody's Investors Service said it changed the outlook for Omers Administration Corp. and its subsidiary Omers Finance Trust to stable from negative and affirmed their Aa1 ratings.

“The change to the outlook to stable reflects an improvement in the pension plan's funded ratio, which on a Moody's-calculated adjusted basis, has improved to 87% as of Dec. 31, 2022 from 58% as of Dec. 31, 2020, because of an increase in market interest rates. Since March 2022, the Bank of Canada has aggressively raised its benchmark rate by 475 basis points (bps) to 5%, its highest level since 2001, to combat elevated inflation. This increase in interest rates has resulted in an improvement in our view of Omers' funding health.

“The change to the outlook also reflects the pension plan's solid investment performance for the full-year 2022,” the agency said in a press release.

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