DBRS Morningstar Finalizes Provisional Rating of "A" With a Stable Trend on Brookfield Finance Inc.’s Senior Unsecured Notes

DBRS Limited (DBRS Morningstar) finalized its provisional rating of "A" with a Stable trend on Brookfield Finance Inc.’s issuance of $700 million, 6.35% Senior Unsecured Notes due January 5, 2034 (the Notes). The Notes will be fully, irrevocably, and unconditionally guaranteed by Brookfield Corporation (BN, rated "A" with a Stable trend by DBRS Morningstar). The proceeds from the Notes will be used to refinance existing indebtedness issued or guaranteed by the BN.

The credit rating assigned to this newly issued debt instrument is based on the credit rating of an already-outstanding debt series of the above-mentioned debt instrument.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
Environmental (E) Factors
Passed-through environmental credit considerations are relevant to the ratings or trends on BN but did not affect the credit ratings or trends. Passed-through environmental credit considerations are indirect through BN’s Insurance Solutions business, which has some exposure to weather-related losses from natural catastrophic events through its P&C business.

There were no Social and 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 methodology: DBRS Morningstar Global Criteria: Guarantees and Other Forms of Support (March 28, 2023; https://www.dbrsmorningstar.com/research/411694).

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.

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

The rated entity or its related entities did participate in the rating process for this 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 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 ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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