Fitch rates OMERS Finance notes AAA

Fitch Ratings said it expects to assign an unsecured debt rating of AAA to the proposed medium-term notes issued by OMERS Finance Trust, a debt issuing entity that is fully guaranteed by OMERS Administration Corp.

The final coupon and maturity will be determined at the time of issuance, Fitch said.

The proceeds will be used for investment purposes, which may include providing financing to one or more direct or indirect subsidiaries of OMERS, Fitch said.

The proposed notes will rank equally with existing senior unsecured notes issued by OMERS, the agency said.

The rating on the unsecured notes is expected to be equalized with OMERS' long-term issuer default rating, reflecting the unconditional and irrevocable guarantee from OMERS and OMERS' fully unsecured funding profile, Fitch said.

The company's leverage, defined as gross debt-to-net assets, would increase modestly with this issuance, but Fitch said it expects it to remain low on an absolute basis and within rating expectations.

Liquidity is viewed as exceptionally strong given predictable and reliable contributions, cash on hand, liquid investments, investment income from OMERS' broad investment mandate, Fitch said.

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