This report does not constitute a rating action. GrandLinq G.P. has continued stable operational performance in 2025 and to date in 2026. Key metrics generally remain above established thresholds since operations began in June 2019. GrandLinq had notable year-over-year improvement in deductions, which declined to C$469,640 for the trailing 12 months ended August 2026 from C$825,145 in the prior year period. We attribute this to proactive weather mitigation by the service provider alongside a milder winter season. A significant freezing rain in February 2026 resulted in an availability deduction of C$120,450, but service was not fully disrupted. Completion is pending due to three remaining light-rail track alignment nonconformance issues and an ongoing free issue equipment cost dispute. Following failed negotiations,
