On Feb. 2, 2004, Standard&Poor's Ratings Services placed its ratings on toll highway 407 International Inc. on CreditWatch with negative implications, including the long-term 'A' issuer credit and senior secured debt ratings, and the 'A-' junior and 'BBB' subordinated debt ratings. The CreditWatch placement results from the dispute between the Province of Ontario's new Liberal government and the company, related to a disagreement over the interpretation of the company's toll rate-setting framework as laid out in the Tolling, Congestion Relief, and Expansion Agreement. Standard&Poor's current ratings on 407 International are based on an understanding that the concession company has the flexibility to set toll rates without the requirement to obtain governmental approval. Nevertheless, the province's current
