In general, we believe that investors’ views on the underlying credit quality of an issuer impacts the price of a bond more than whether a specific ratings agency rates the bond. For example, in markets where issuers and investors can choose their ratings agencies without constraint, it is conceivable that a company with a strong credit profile secures a more attractive interest rate on its unrated debt issuance than its weaker peer, even if that peer has rated debt. This dynamic supports our ability to compete with our larger peers in the U.S. and European structured finance markets.

However, index criteria, investment mandates, or regulatory use of credit ratings can favorably impact interest rates for sufficiently highly rated debt compared to unrated bond offerings. As such, we believe issuers In Canada rated by DBRS Morningstar do benefit from securing a DBRS Morningstar rating based on our strong brand, inclusion in indexes, and history in the Canadian credit markets. It is this same dynamic that currently constrains our growth opportunities in the U.S. corporate markets.