...- 407 International Inc. is issuing C$500 million in senior secured notes due in 2053. It will use the proceeds to fund expenditures; debt service payments; tax payments; and general corporate purposes, including distributions. - We assigned our 'A' rating to the senior secured notes. The ratings on the company's existing senior, junior, and subordinate debt are unchanged at 'A', 'A-', and '###', respectively. The outlook is stable. - The rating action reflects 407's traffic, which outperformed our forecast in 2022 and has strongly rebounded in 2023, and that 407's credit metrics under our revised traffic and revenue forecast support additional leverage. Our revised forecast assumes a toll increase of 10% in 2024 and has been somewhat adjusted for the risk of higher-than-expected schedule 22 (congestion) payments above our traffic expectations. That said, the rating could be negatively affected if 407 decides to implement a toll increase even with slower peak traffic recovery and weaker...
