Standard & Poor’s has upheld the Caisse de dépôt et placement du Québec credit ratings despite its exposure to third-party asset-backed commercial paper(ABCP).
The credit rating agency arrived at its decision after a study of the commercial paper market and the Caisse’s situation.
The pension fund reportedly has exposure of between $13 billion and $20 billion to the $35 billion third-party ABCP market.
Its analysis indicates the Caisse has ample liquid assets that will enable it to meet its liquidity requirements over the short-, medium- and long-term.
This assessment corroborates the Caisse’s position that it has sufficient liquid asset to hand its own needs as well as those of its depositors, whether they are insurance or pension plans.
S&P’s short-term A-1+ and long-term AAA credit ratings of the Caisse and its subsidiary, CDP Financial, are the highest assigned by the rating agency.
To view S&P’s report, click here.
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