S&P rates Teranet bonds BBB+

Standard & Poor's said it assigned a BBB+ rating to Teranet Holding LP's C$200 million senior secured real return bonds due 2031.

The rating reflects a view of subsidiary Teranet Inc.'s aggressive financial risk profile resulting from the recent C$1.6 billion and planned C$500 million issue in 2011, S&P said.

The rating also considers its strong business risk profile stemming from its position as an exclusive provider of two services essential to the Ontario real estate market until 2067, strong EBITDA generation and recently renewed contractual framework with the Province of Ontario, the agency said.

The C$200 million together with the other issues will refund the majority of the commercial paper debt outstanding, make a C$1 billion payment to the province and pay for transaction costs, S&P said.

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