407 International Inc. (407) has issued C$600 million in senior secured notes due in November 2066. We expect the company to use the proceeds to repay its maturing senior series 99-A6 notes due Dec. 1, 2026 (C$381.5 million), with the remainder for general corporate purposes, including distributions. We assigned our'A'rating to 407’s new senior secured notes. At the same time, we affirmed our ratings on its senior ('A'), junior ('A-'), and subordinated ('BBB') debt. The outlook on all the ratings is stable. The transaction is expected to result in a very marginal net increase in the project’s overall debt stack, but this is more than offset by its growing revenue and cash flow. 407’s revenue and earnings growth
