Moody's rates EllisDon bonds A3

Moody's Investors Service said it assigned a first-time A3 rating to two amortizing senior secured bonds totaling about C$154.9 million to be issued by EllisDon Infrastructure RIH General Partnership.

The outlook is stable.

The proceeds will be used to finance a portion of its obligations under a long-term project agreement with the Interior Health Authority to design, build, finance, maintain and rehabilitate the new Patient Care Tower project on the Royal Inland Hospital campus in British Columbia, Moody's said.

The ratings reflect the company's typical contractual structure whereby the project company only keeps minimal responsibilities and subcontracts all its obligations on a back-to-back basis under fixed price contracts, the agency explained.

It also reflects a well understood project agreement with a credit worthy counterparty in the authority, Moody's said.

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