DBRS revises the TMX rating trend

“So far, the dismantling has been driven by so far [cash flow] Growth and debt repayment throughout 2024, ”said the rating agency, and it is expected that the outstanding commercial paper will continue.

With a view to the future, DBRS now expects TMX to reach its target leverage faster than expected.

“In view of the high creditworthiness of TMX, another loan rating upgrade is unlikely, especially in view of the group's acquisition,” said the rating agency in a research note.

As it looks, the loan ratings of the exchange company are supported by the “strong franchise with leading domestic market positions in various companies, including stock exchanges and clearinghouses”, such as DBRS.

“The group has successfully expanded the business with data and analyzes, which offers an important source for recurring income, which, despite a continuing operational operating environment, leads to a strong generation of yield for some of the TMX business borders,” said the rating agency.

In 2024, the winning of TMX rose by 16%because the income rose by 22%and further diversified. About half of his income now comes from outside of Canada, 41% in 2023, as DBRS found. TMX, together with securities trading and clearing, has also recorded strong growth in its data business. However, income from the business with capital formation only rose by 2%, “since the macroeconomic conditions for the capital survey are still difficult”.

In addition, DBRS has that TMX has robust risk management skills and strong governance.