Research Update: GrandLinq GP's Senior Secured Debt Upgraded To 'A-' From 'BBB+' On Significant Project Progress; Outlook Stable

We expect GrandLinq GP's construction of the Waterloo Light Rail Transit (LRT) project (excluding the testing and commissioning of the LRT vehicles and related systems testing) to finish by the end of July 2017. In addition, we believe the project has sufficient liquidity and schedule cushion to complete the testing and commissioning of the LRT vehicles by the expected substantial completion date of April 26, 2018. As a result, we believe construction risks have reduced considerably. Starting in August 2017, the Regional Municipality of Waterloo is expected to make compensation payments for expected costs (including debt service) through the substantial completion date. We are raising our issue-level ratings on GrandLinq's senior secured debt to 'A-' from 'BBB+'. The stable outlook

...+ We expect GrandLinq GP's construction of the Waterloo Light Rail Transit (LRT) project (excluding the testing and commissioning of the LRT vehicles and related systems testing) to finish by the end of July 2017. + In addition, we believe the project has sufficient liquidity and schedule cushion to complete the testing and commissioning of the LRT vehicles by the expected substantial completion date of April 26, 2018. + As a result, we believe construction risks have reduced considerably. + Starting in August 2017, the Regional Municipality of Waterloo is expected to make compensation payments for expected costs (including debt service) through the substantial completion date. + We are raising our issue-level ratings on GrandLinq's senior secured debt to 'A-' from '###+'. + The stable outlook reflects our view that construction (excluding the vehicles' testing and commissioning and vehicle related systems testing) will be complete in the next two months and remaining items will not pose...

Research Update