Export Development Canada Rating Affirmed At 'AAA'; Outlook Remains Stable

  • We are affirming our ratings, including our 'AAA' long-term issuer credit rating, on Export Development Canada (EDC).
  • The ratings reflect our assessment of EDC's critical role in supporting Canadian exporters, the importance of the trade sector in the national economy, and the corporation's integral link with the Government of Canada.
  • The stable outlook reflects that on Canada.
TORONTO (S&P Global Ratings) Jan. 11, 2019--S&P Global Ratings today said it 
affirmed its ratings, including its 'AAA' long-term issuer credit rating, on 
Export Development Canada (EDC). The outlook is stable.

The stable outlook on EDC mirrors that on Canada (AAA/Stable/A-1+), and 
reflects S&P Global Ratings' expectation that, over the next two years, the 
corporation will continue to play a critical role in the government's economic 
policy, and the link between the government and EDC will remain integral.

Changes in policy that could result in a material weakening of the 
government's support for the corporation's role could lead us reassess our 
view of EDC's role and link. This, in turn, could lead us to detach the 
ratings on the corporation from those on the government and assign a 
stand-alone credit profile to EDC. A downgrade to Canada would also lead to a 
downgrade to the corporation under our government-related entities (GRE) 
criteria.

The ratings on EDC reflect S&P Global Ratings' assessment of the following 
factors:
  • The corporation's critical role in supporting Canadian exporters, the importance of the trade sector in the national economy, and the corporation's integral link with the Government of Canada;
  • The likelihood of EDC receiving timely and sufficient extraordinary government support being almost certain; and
  • The corporation's status as an agent Crown corporation (an agent of Her Majesty in right of Canada).
We view EDC as a GRE of the federal government, because we believe that the 
likelihood of EDC receiving extraordinary government support in a period of 
financial distress is almost certain. 

EDC is a federal Crown corporation, wholly owned by the Government of Canada, 
and was established in 1944. Its mandate is to support and develop, directly 
and indirectly, Canada's export trade and the country's capacity to engage in 
trade as well as respond to international business opportunities. The 
corporation provides insurance and financial services, bonding products, and 
small business solutions to Canadian exporters and investors and their 
international buyers. It also supports Canadian direct investment abroad and 
investment into the country.