S&P rates British Columbia Ferry bond AA-

Standard & Poor's said it assigned an AA- debt rating to British Columbia Ferry Services Inc.'s 30-year senior secured bond issue of up to C$200 million series 14-1.

The proceeds from the sale of the series 14-1 bonds will refinance an upcoming bond maturity, S&P said.

The rating on the bond reflects the company's stand-alone credit profile, which is assessed at AA-, the agency said.

The ratings also consider the moderate likelihood that the provincial government would provide extraordinary support in the event of financial distress, which results in no uplift to the rating, S&P said.

The ratings also take into account the company's very low industry risk with low cyclicality and volatility of earnings during economic cycles and very low competition, the agency said.

British Columbia's extremely strong economic fundamentals with solid population growth since 2007, sound projected employment growth and no significant employment concentration also supports the ratings.

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