DBRS Morningstar Places Certain Ratings of Brookfield Corporation and Its Subsidiaries Under Review With Positive Implications

DBRS Limited (DBRS Morningstar) placed the Issuer Rating, long-term obligations, and preferred shares credit ratings of Brookfield Corporation (BN or the Company, formerly Brookfield Asset Management Inc.) and its guaranteed subsidiaries Under Review with Positive Implications. In addition, DBRS Morningstar placed the short-term credit ratings of BN and its guaranteed subsidiaries Under Review with Developing Implications. These rating actions are not the result of any change in credit risk of the Company (or its guaranteed subsidiaries).

Following the annual surveillance review of the credit ratings of the Company on July 5, 2023, DBRS Morningstar identified an error in the application of certain methodologies used in the determination of the credit ratings of BN. DBRS Morningstar believes the rating rationale for the credit ratings of BN, and the applicable methodological approach, was not adequately disclosed previously. This error is not connected in any way to the data and information provided by the Company for the purposes of providing the relevant credit ratings.

Over the course of the coming weeks, DBRS Morningstar will conduct a review of the Company and the applicable methodological approach(es). Further to that review, DBRS Morningstar may apply additional or different DBRS Morningstar methodologies from those that have been applied in the past in the determination of the credit ratings of BN. Such methodologies may include the “Global Methodology for Rating Investment Management Companies” and the “Global Methodology for Rating Insurance Companies and Insurance Organizations.” The application of a different methodological approach may result in changes in the level of one or more outstanding credit ratings of BN. DBRS Morningstar will provide information regarding the rationale for any such changes in connection with the announcement of the related credit rating actions.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/416784 (July 4, 2023).

Notes:
All figures are in U.S. dollars unless otherwise noted.

DBRS Morningstar applied the following principal methodologies:

-- DBRS Morningstar Global Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (October 26, 2022; https://www.dbrsmorningstar.com/research/404334)

-- Global Methodology for Rating Investment Management Companies (December 7, 2022; https://www.dbrsmorningstar.com/research/407010)

-- Global Methodology for Rating Insurance Companies and Insurance Organizations (July 14, 2023; https://www.dbrsmorningstar.com/research/417109)

-- Global Methodology for Rating Entities in the Real Estate Industry (April 11, 2023; https://www.dbrsmorningstar.com/research/412477)

-- Global Methodology for Rating Companies in the Independent Power Producer Industry (May 9, 2023; https://www.dbrsmorningstar.com/research/413646)

-- Global Methodology for Rating Companies in the Pipeline and Midstream Energy Industry (November 3, 2022; https://www.dbrsmorningstar.com/research/404917)

-- Rating Companies in the Regulated Electric, Natural Gas, and Water Utilities Industry (September 13, 2022; https://www.dbrsmorningstar.com/research/402616)

The following methodologies have also been applied:

-- DBRS Morningstar Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers (October 20, 2022; https://www.dbrsmorningstar.com/research/404248)

-- DBRS Morningstar Global Criteria: Guarantees and Other Forms of Support (March 28, 2023; https://www.dbrsmorningstar.com/research/411694)

-- DBRS Morningstar Criteria: Commercial Paper Liquidity Support for Nonbank Issuers (Feb 24, 2023; https://www.dbrsmorningstar.com/research/410196)

The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

A description of how DBRS Morningstar analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/397223/interplay-of-global-corporate-finance-rating-methodologies-when-analyzing-corporate-finance-transactions.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrsmorningstar.com.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

DBRS Morningstar had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

Information regarding DBRS Morningstar credit ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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