DBRS rates OPB notes AA (high)

DBRS said it assigned a provisional rating of AA (high) to the up to C$500 million offering of series A debentures of OPB Finance Trust, a new wholly owned subsidiary of the Ontario Pension Board. The trend is stable.

The agency said the rating is primarily supported by the exclusive mandate, history of prudent management and high level of assets of Ontario Pension Board, which unconditionally and irrevocably guarantees the debentures.

However, the demographics of the Ontario Public Service Pension Plan, of which the Ontario Pension Board has an exclusive legislated mandate to manage the assets and administer the pension benefits, are weaker than rated peers, and this limits the rating to the current level, DBRS said.

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