We are assigning our 'A' rating to 407 International Inc.'s proposed C$150 million senior secured medium-term notes and affirming our 'A' and 'A-' ratings on the senior secured debt and 'BBB' rating on the subordinated debt of the company. We expect the company will use approximately C$100 million of the proceeds from the proposed offering to debt fund the project's capital expenditure program and pre-fund a 12-month debt service reserve fund. We expect the balance to be used for other corporate purposes, allowing operating cash receipts of an equivalent size to flow to equity dividends. The stable outlook reflects our expectation that 407 will post debt service coverage ratios in line with our base-case scenario. On March 24, 2015, Standard
