Infrastructure Ontario (IO) has changed the way it makes some payments during the construction period to reduce interest costs for private-sector partners. However, the change could affect the creditworthiness of loans made to finance operations, said Dominion Bond Rating Service (DBRS). IO disagrees with that assessment. DBRS said the new structure would not change the ratings on construction period borrowing.
IO is making Construction Period Payments (CPP, sometimes called milestone payments) for some projects, such as transit, but is continuing to hold social project payments until substantial completion.