407 International Inc. is issuing C$700 million in senior secured notes consisting of $400 million series 25 A-3 notes due in 2035 and $300 million series 25 A-2 notes due in 2055. It will use the proceeds to repay about C$400 million outstanding under its revolver credit facility, fund reserves, and for general corporate purposes, including distributions. We assigned our 'A' rating to the new senior secured notes. We also affirmed the ratings on the company's senior ('A'), junior ('A-'), and subordinate ('BBB') debt. The outlook is stable. The rating action reflects the resiliency and inelasticity of 407's traffic, which continues to increase despite a subdued economy and weighted average cumulative 35% toll increase (based on our calculation) in 2024
