09/26/2024 | Press release | Distributed by Public on 09/26/2024 13:09
| | |
Offering Price(1)
|
| |
Maximum
Sales Load |
| |
Proceeds to Fund(2)
|
|
Class I Shares, per share
|
| | Current NAV | | |
None
|
| | Current NAV | |
Class D Shares, per share
|
| |
Current NAV, plus applicable front-end sales load
|
| |
2.00%
|
| |
Current NAV, minus applicable front-end sales load
|
|
Class S Shares, per share
|
| |
Current NAV, plus applicable front-end sales load
|
| |
3.50%
|
| |
Current NAV, minus applicable front-end sales load
|
|
Class T Shares, per share
|
| |
Current NAV, plus applicable front-end sales load
|
| |
3.50%
|
| |
Current NAV, minus applicable front-end sales load
|
|
|
Prospectus Summary
|
| | | | 1 | | |
|
Summary of Fund Expenses
|
| | | | 26 | | |
|
Financial Highlights
|
| | | | 28 | | |
|
The Fund
|
| | | | 32 | | |
|
Use of Proceeds
|
| | | | 32 | | |
|
Investment Objectives and Strategies
|
| | | | 33 | | |
|
Leverage
|
| | | | 41 | | |
|
Risks
|
| | | | 43 | | |
|
Conflicts of Interest
|
| | | | 78 | | |
|
Management of the Fund
|
| | | | 92 | | |
|
Plan of Distribution
|
| | | | 97 | | |
|
Repurchases
|
| | | | 105 | | |
|
Calculation of Net Asset Value and Valuation
|
| | | | 108 | | |
|
Distributions and Dividends
|
| | | | 111 | | |
|
Dividend Reinvestment Plan
|
| | | | 112 | | |
|
Description of Shares
|
| | | | 113 | | |
|
Certain Provisions in Charter and Bylaws
|
| | | | 117 | | |
|
Certain U.S. Federal Income Tax Considerations
|
| | | | 120 | | |
|
Custodian and Transfer Agent
|
| | | | 126 | | |
|
Legal Matters
|
| | | | 126 | | |
|
Independent Registered Public Accounting Firm
|
| | | | 126 | | |
|
Class I
Shares |
Class D
Shares |
|
Class S
Shares |
|
Class T
Shares |
| ||||||||||||||||
Stockholder Transaction Expenses | | | | | | | | | | | |||||||||||||
Maximum Front-End Sales Load (as a percentage of the offering price)(1)
|
| |
None
|
| | | | 2.00% | | | | | | 3.50% | | | | | | 3.50% | | | |
Maximum Repurchase Fee(2)
|
| | | | 2.00% | | | | | | 2.00% | | | | | | 2.00% | | | | | | 2.00% |
Annual Fund Expenses (as a percentage of Net Assets attributable to Shares)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Management Fee(3)
|
| | | | 1.25% | | | | | | 1.25% | | | | | | 1.25% | | | | | | 1.25% | | |
Incentive Fee(4)
|
| | | | 0.56% | | | | | | 0.56% | | | | | | 0.56% | | | | | | 0.56% | | |
Distribution and/or Shareholder Servicing Fees(5)
|
| |
None
|
| | | | 0.25% | | | | | | 0.85% | | | | | | 0.85% | | | |||
Interest Payments on Borrowed Funds(6)
|
| | | | 0.16% | | | | | | 0.16% | | | | | | 0.16% | | | | | | 0.16% | | |
Tax Expense(7)
|
| | | | 0.17% | | | | | | 0.17% | | | | | | 0.17% | | | | | | 0.17% | | |
Other Expenses(8)
|
| | | | 0.26% | | | | | | 0.26% | | | | | | 0.26% | | | | | | 0.26% | | |
Total Annual Fund Operating Expenses
|
| | | | 2.40% | | | | | | 2.65% | | | | | | 3.25% | | | | | | 3.25% | | |
Fees Waived and/or Expenses Reimbursed or Recouped(9)
|
| | | | 0.24% | | | | | | 0.24% | | | | | | 0.24% | | | | | | 0.24% | | |
Total Annual Fund Operating Expenses After Fee Waiver and/or
Expense Reimbursement or Recoupment |
| | | | 2.64% | | | | | | 2.89% | | | | | | 3.49% | | | | | | 3.49% | | |
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement or Recoupment, Excluding Management and Incentive Fees
|
| | | | 0.83% | | | | | | 1.08% | | | | | | 1.68% | | | | | | 1.68% | | |
| | |
1 Year
|
| |
3 Years
|
| |
5 Years
|
| |
10 Years
|
| ||||||||||||
You would pay the following expenses on a $1,000 Class I Shares investment, assuming a 5% annual return:
|
| | | $ | 27 | | | | | $ | 77 | | | | | $ | 130 | | | | | $ | 275 | | |
You would pay the following expenses on a $1,000 Class D Shares
investment, assuming a 5% annual return: |
| | | $ | 49 | | | | | $ | 103 | | | | | $ | 160 | | | | | $ | 314 | | |
You would pay the following expenses on a $1,000 Class S Shares
investment, assuming a 5% annual return: |
| | | $ | 69 | | | | | $ | 134 | | | | | $ | 201 | | | | | $ | 379 | | |
You would pay the following expenses on a $1,000 Class T Shares
investment, assuming a 5% annual return: |
| | | $ | 69 | | | | | $ | 136 | | | | | $ | 203 | | | | | $ | 381 | | |
| | |
Period Ended
December 31, 2023(1) |
| |||
Class I | | | | | | | |
Per Share Operating Performance: | | | | | | | |
Net asset value, beginning of period
|
| | | $ | 10.00 | | |
Income from Investment Operations: | | | | | | | |
Net investment income(2)
|
| | | | 0.04 | | |
Net realized and unrealized gain(2)
|
| | | | 0.11 | | |
Total from investment operations(2)
|
| | | | 0.15 | | |
Distributions to Shareholders: | | | | | | | |
From distributable earnings
|
| | | | (0.06) | | |
From return of capital
|
| | | | (0.02) | | |
Total distributions to shareholders(3)
|
| | | | (0.08) | | |
Net asset value, end of period.
|
| | | $ | 10.07 | | |
Total Investment Return(4)(5)
|
| | | | 1.48% | | |
Ratios and Supplemental Data: | | | | | | | |
Net assets, end of period (in thousands)
|
| | | $ | 1,589,722 | | |
Ratio of Expenses to Average Net Assets: | | | | | | | |
Management fee expense
|
| | | | 1.25% | | |
Incentive fee expense.
|
| | | | 0.41% | | |
Operating expenses
|
| | | | 0.26% | | |
Total expenses before interest, current tax and organizational and offering
expenses |
| | | | 1.92% | | |
Organizational and offering expenses(5)
|
| | | | 0.72% | | |
Interest expense(5)
|
| | | | 0.16% | | |
Current tax expense(5)
|
| | | | 0.06% | | |
Gross expenses, excluding reimbursement and including interest, current tax and organizational and offering expenses
|
| | | | 2.86% | | |
Expense reimbursement/waivers(5)
|
| | | | (0.68)% | | |
Net expenses, including reimbursement, interest, current tax and organizational and offering expenses
|
| | | | 2.18% | | |
Ratio of Net Investment Income (Loss) to Average Net Assets: | | | | | | | |
Net investment income.
|
| | | | 3.67% | | |
Net investment income, excluding the effect of reimbursement, interest expense and current tax expense
|
| | | | 3.21% | | |
Portfolio turnover rate(5)
|
| | | | 0.03% | | |
| | |
Period Ended
December 31, 2023(1) |
| |||
Class S | | | | | | | |
Per Share Operating Performance: | | | | | | | |
Net asset value, beginning of period
|
| | | $ | 10.00 | | |
Income from Investment Operations: | | | | | | | |
Net investment income(2)
|
| | | | 0.05 | | |
Net realized and unrealized gain(2)
|
| | | | 0.02 | | |
Total from investment operations(2)
|
| | | | 0.07 | | |
Distributions to Shareholders: | | | | | | | |
From distributable earnings
|
| | | | (0.02) | | |
From return of capital
|
| | | | (0.01) | | |
Total distributions to shareholders(3)
|
| | | | (0.03) | | |
Net asset value, end of period
|
| | | $ | 10.04 | | |
Total Investment Return(4)(5)
|
| | | | 0.70% | | |
Ratios and Supplemental Data: | | | | | | | |
Net assets, end of period (in thousands)
|
| | | $ | 7,034 | | |
Ratio of Expenses to Average Net Assets: | | | | | | | |
Management fee expense
|
| | | | 1.25% | | |
Incentive fee expense
|
| | | | 0.41% | | |
Operating expenses
|
| | | | 1.11% | | |
Total expenses before interest, current tax and organizational and offering
expenses |
| | | | 2.77% | | |
Organizational and offering expenses(5)
|
| | | | 0.72% | | |
Interest expense(5)
|
| | | | 0.16% | | |
Current tax expense(5)
|
| | | | 0.06% | | |
Gross expenses, excluding reimbursement and including interest, current tax and organizational and offering expenses
|
| | | | 3.71% | | |
Expense reimbursement/waivers(5)
|
| | | | (0.68)% | | |
Net expenses, including reimbursement, interest, current tax and organizational and offering expenses
|
| | | | 3.03% | | |
Ratio of Net Investment Income (Loss) to Average Net Assets: | | | | | | | |
Net investment income
|
| | | | 2.82% | | |
Net investment income, excluding the effect of reimbursement, interest expense and current tax expense
|
| | | | 2.36% | | |
Portfolio turnover rate(5)
|
| | | | 0.03% | | |
Fiscal or Period End
|
| |
Total Amount
Outstanding Exclusive of Treasury Securities |
| |
Asset
Coverage per Unit(1) |
| |
Involuntary
Liquidating Preference Per Unit |
| |
Average
Market Value per Unit (Exclude Bank Loans) |
| |
Type of Senior Security
|
| ||||||||||||
December 31, 2023
|
| | | $ | 356,439,000 | | | | | $ | 5,480 | | | | | | N/A | | | | | | N/A | | | |
Loan Payable, Credit Facility,
Reverse Repurchase Agreement |
|
|
Management Fees
|
| | | $ | 3,314,373 | | |
|
Incentive Fees
|
| | | $ | 1,085,988 | | |
|
Organizational Costs Recouped by Adviser
|
| | | $ | 450,000 | | |
|
Net Management Fees Paid to Adviser
|
| | | $ | 4,850,361* | | |
Regular Mail
|
| |
Overnight or Express Mail
|
|
Brookfield Infrastructure Income Fund Inc. PO Box 219501 Kansas City, MO 64121-9501 |
| |
Brookfield Infrastructure Income Fund Inc. 430 W 7thStreet Suite 219501 Kansas City, MO 64105-1407 |
|
Your investment
|
| |
Front-End Sales
Load as a % of the offering price of Class D Shares (Reallowance to Broker-Dealers) |
| |
Front-End Sales
Load as a % of the offering price of Class S Shares (Reallowance to Broker-Dealers) |
| |
Front-End Sales
Load as a % of the offering price of Class T Shares (Reallowance to Broker-Dealers) |
| |||||||||
Up to $149,999.99
|
| | | | 2.00% | | | | | | 3.50% | | | | | | 3.50% | | |
$150,000.00 to $499,999.99
|
| | | | 1.50% | | | | | | 3.00% | | | | | | 3.00% | | |
$500,000.00 to $999,999.99
|
| | | | 1.00% | | | | | | 2.50% | | | | | | 2.50% | | |
$1,000,000.00 and over
|
| | | | 0.50% | | | | | | 2.00% | | | | | | 2.00% | | |
| | |
Page
|
| |||
The Fund
|
| | | | 1 | | |
Investment Objective and Policies
|
| | | | 2 | | |
Risk Factors
|
| | | | 4 | | |
Investment Restrictions
|
| | | | 50 | | |
Management of the Fund
|
| | | | 52 | | |
Distribution of Fund Shares
|
| | | | 68 | | |
Repurchases
|
| | | | 71 | | |
Portfolio Transactions and Brokerage
|
| | | | 72 | | |
Portfolio Turnover
|
| | | | 73 | | |
Taxation
|
| | | | 74 | | |
Independent Registered Public Accounting Firm
|
| | | | 81 | | |
Custodian and Transfer Agent
|
| | | | 81 | | |
Legal Matters
|
| | | | 81 | | |
Additional Information
|
| | | | 81 | | |
Financial Statements
|
| | | | 82 | | |
Appendix A Description of S&P, Moody's and Fitch Ratings
|
| | | | A-1 | | |
Name, position(s), address(1) and year of birth |
| |
Term of office
and length of time served(2) |
| |
Number of
funds in Fund Complex overseen by Director(3) |
| |
Principal occupation(s)
during past five years |
| |
Other directorships held by
director during past five years(4) |
|
Independent Directors(5) | | | | | | | | | | | | | |
Edward A. Kuczmarski
Director and Independent Chair of the Board, Member of the Audit Committee, Member of the Nominating and Compensation Committee Born: 1949 |
| |
Since 2023
|
| |
8
|
| | Retired | | | Director/Trustee of several investment companies advised by PSG (2011 - Present). | |
Stuart A. McFarland
Director, Member of the Audit Committee, Member of the Nominating and Compensation Committee Born: 1947 |
| |
Since 2023
|
| |
8
|
| | Managing Partner of Federal City Capital Advisors (1997 - 2021). | | |
Director/Trustee of several investment companies advised by PSG (2006 - Present); Director of Drive Shack Inc. (formerly, New Castle Investment Corp.) (2000 - 2023); Lead Independent Director of New America High Income Fund (2013 - Present); Director of New Senior Investment Group, Inc. (2014 - 2021); Director of Steward Partners (2017 - 2021).
|
|
Heather S. Goldman
Director, Member of the Audit Committee, Chair of the Nominating and Compensation Committee Born: 1967 |
| |
Since 2023
|
| |
8
|
| | CFO of My Flex, Inc., an EQBR company (2022 - 2023). | | |
Director/Trustee of several investment companies advised by PSG (2013 - Present). Board Director of Gesher USA (2015 - Present); Trustee of Nevada Museum of Art (2016 - 2018); Member of the Honorary Board of University Settlement House (2014 - Present); Co-founder, CEO and Chair of Capstak, Inc. (2014 - 2018).
|
|
Name, position(s), address(1) and year of birth |
| |
Term of office
and length of time served(2) |
| |
Number of
funds in Fund Complex overseen by Director(3) |
| |
Principal occupation(s)
during past five years |
| |
Other directorships held by
director during past five years(4) |
|
William H. Wright II
Director, Chair of the Audit Committee, Member of the Nominating and Compensation Committee Born: 1960 |
| |
Since 2023
|
| |
8
|
| | Retired | | |
Director/Trustee of several investment companies advised by PSG (2020 - Present); Director of Alcentra Capital Corporation (1940 Act BDC) (2018 - 2019); Advisory Director of Virtus Global Dividend & Income Fund, Virtus Global Multi-Sector Income Fund, Virtus Total Return Fund and Duff & Phelps Select Energy MLP Fund (2013 - 2019); Director of the Carlyle Group, TCG BDC I, Inc., TCG BDC II, Inc. and Carlyle Secured Lending III (February 2021 - Present).
|
|
Betty A. Whelchel
Director, Member of the Audit Committee, Member of the Nominating and Compensation Committee Born: 1956 |
| |
Since January 1, 2024(6)
|
| |
8
|
| | US Head of Public Policy: Regulatory Affairs of BNP Paribas (2016 - 2019). | | | Director/Trustee of several investment companies advised by PSG (2024 - Present). | |
Name, position(s), address(1) and year of birth |
| |
Term of office
and length of time served(2) |
| |
Number of
funds in Fund Complex overseen by Director(3) |
| |
Principal occupation(s)
during past five years |
| |
Other directorships held by
director during past five years(4) |
|
Interested Directors/Officers:(5) | | | | | | | | | | | | | |
Brian F. Hurley Director and Secretary Born: 1977 |
| |
Secretary since 2023; Director since March 29, 2024(6)
|
| |
8
|
| |
President of several investment companies advised or administered by PSG (2014 - Present); General Counsel of the PSG (2017 - Present); General Counsel of Brookfield Oaktree Wealth Solutions LLC (2021 - Present); Managing Partner of Brookfield Asset Management Inc. (2016 - Present).
|
| | Director/Trustee of several investment companies advised by PSG (2011 - Present). | |
Name, position(s), address(1) and year of birth |
| |
Term of office
and length of time served(2) |
| |
Number of
funds in Fund Complex overseen by Director(3) |
| |
Principal occupation(s)
during past five years |
| |
Other directorships held by
director during past five years(4) |
|
Chloe Berry
President Born: 1984 |
| |
Since 2023
|
| |
N/A
|
| |
Managing Director of the
Adviser (2022 - Present); Senior Vice President of the Adviser (2017 - 2022). |
| | N/A | |
Casey P. Tushaus Treasurer Born: 1982 |
| |
Since 2023
|
| |
N/A
|
| |
Treasurer of several investment companies advised by PSG
(2021 - Present); Assistant Treasurer of several investment companies advised by PSG (2016 - 2021); Director of PSG (2021 - Present); Vice President of PSG (2014 - 2021). |
| | N/A | |
Craig A. Ruckman
Assistant Secretary Born: 1977 |
| |
Since 2023
|
| |
N/A
|
| |
Secretary of several investment companies advised by PSG (November 2022 - Present); Managing Director of PSG (October 2022 - Present); Director of Allianz Global Investors U.S. Holdings LLC (2016 - 2022); Assistant Secretary of 63 funds in the Allianz Global Investors Fund Complex (2017 - 2020); and Chief Legal Officer of Allianz Global Investors Distributors LLC (2019 - 2022).
|
| | N/A | |
Adam R. Sachs Chief Compliance Officer Born: 1984 |
| |
Since 2023
|
| |
N/A
|
| |
CCO of several investment companies advised by PSG (2017 - Present); Director of PSG (2017 - Present); CCO of Brookfield Investment Management (Canada) Inc. (2017 - Present).
|
| | N/A | |
Mohamed S. Rasul Assistant Treasurer Born: 1981 |
| |
Since 2023
|
| |
N/A
|
| |
Assistant Treasurer of several investment companies advised by PSG (2016 - Present); Vice President of PSG (2019 - Present); Assistant Vice President of PSG (2014 - 2019).
|
| | N/A | |
Name of Director
|
| |
Aggregate dollar range of equity
securities held in the Fund**(1) |
| |
Aggregate dollar range of equity
securities held in the Fund Complex(2) |
|
Interested Directors | | | | | | | |
Brian F. Hurley(3)
|
| |
None
|
| |
$10,001 - $50,000
|
|
Independent Directors | | | | | | | |
Edward A. Kuczmarski
|
| |
None
|
| |
Over $100,000
|
|
Stuart A. McFarland
|
| |
None
|
| |
Over $100,000
|
|
Heather S. Goldman
|
| |
None
|
| |
$50,001 - $100,000
|
|
William H. Wright II
|
| |
None
|
| |
None
|
|
Betty A. Whelchel(4)
|
| |
None
|
| |
None
|
|
Name of Director
|
| |
Aggregate
Compensation from the Fund(1) |
| |
Pension or
Retirement Benefits Accrued As Part of Fund Expenses |
| |
Estimated
Annual Benefits Upon Retirement |
| |
Total
Compensation from Fund Complex(2) |
| ||||||||||||
Interested Directors | | | | | | | | | | | | | | | | | | | | | | | | | |
Brian F. Hurley(3)
|
| |
N/A
|
| |
N/A
|
| |
N/A
|
| |
N/A
|
| ||||||||||||
Independent Directors | | | | | | | | | | | | | | | | | | | | | | | | | |
Edward A. Kuczmarski
|
| | | $ | 20,063 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 270,000 | | |
William H. Wright II
|
| | | $ | 19,692 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 265,000 | | |
Stuart A. McFarland
|
| | | $ | 16,719 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 225,000 | | |
Heather S. Goldman
|
| | | $ | 17,462 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 235,000 | | |
Betty A. Whelchel(4)
|
| |
N/A
|
| | | $ | 0 | | | | | $ | 0 | | | |
N/A
|
|
Portfolio Manager
|
| |
Number of Registered
Investment Companies Managed and Total Assets for such Accounts* |
| |
Other Pooled Investment
Companies and Total Assets for such Accounts* |
| |
Number of Other Accounts
Managed and Total Assets for such Accounts* |
| |||||||||||||||||||||||||||
| | |
# of
accounts |
| |
AUM
|
| |
# of
accounts |
| |
AUM
|
| |
# of
accounts |
| |
AUM
|
| ||||||||||||||||||
Sam Pollock
|
| | | | 0 | | | | | $ | 0 | | | | | | 11 | | | | | $ | 73,773.3** | | | | | | 0 | | | | | $ | 0 | | |
Chloe Berry
|
| | | | 0 | | | | | $ | 0 | | | | | | 0 | | | | | $ | 0 | | | | | | 0 | | | | | $ | 0 | | |
Sam Garetano
|
| | | | 0 | | | | | $ | 0 | | | | | | 0 | | | | | $ | 0 | | | | | | 0 | | | | | $ | 0 | | |
Caroline Rouse
|
| | | | 0 | | | | | $ | 0 | | | | | | 5 | | | | | $ | 5,839.6*** | | | | | | 0 | | | | | $ | 0 | | |
Hrishikesh Balaji
|
| | | | 0 | | | | | $ | 0 | | | | | | 0 | | | | | $ | 0 | | | | | | 0 | | | | | $ | 0 | | |
Portfolio Manager
|
| |
Number of Registered
Investment Companies Managed and Total Assets for such Accounts* |
| |
Other Pooled Investment
Companies and Total Assets for such Accounts* |
| |
Number of Other Accounts
Managed and Total Assets for such Accounts* |
| |||||||||||||||||||||||||||
| | |
# of
accounts |
| |
AUM
|
| |
# of
accounts |
| |
AUM
|
| |
# of
accounts |
| |
AUM
|
| ||||||||||||||||||
Christopher Janus
|
| | | | 1 | | | | | $ | 997.2 | | | | | | 0 | | | | | $ | 0 | | | | | | 9 | | | | | $ | 5,627.1 | | |
Daniel Parker
|
| | | | 3 | | | | | $ | 643.7 | | | | | | 5 | | | | | $ | 71.5** | | | | | | 11 | | | | | $ | 6,386.4*** | | |
Portfolio Manager
|
| |
Dollar Range of Fund Shares
Beneficially Owned** |
| |||
Sam Pollock
|
| | | | None | | |
Chloe Berry
|
| | | | None | | |
Sam Garetano
|
| | | | None | | |
Caroline Rouse
|
| | | | None | | |
Hrishikesh Balaji
|
| | | | None | | |
Christopher Janus
|
| | | | None | | |
Daniel Parker
|
| | | | None | | |
Name and Address
|
| |
% of Shares
|
| |
Nature of Ownership
|
| |||
Brookfield Infrastructure Income Fund FCP-RAIF 26A Boulevard Royal Luxembourg L-2449 Luxembourg |
| | | | 73.99167% | | | | Record | |
Brookfield BRP Holdings (US) Inc. 41 Victoria Street Gatineau QC J8X 2A1 Canada |
| | | | 8.41065% | | | | Record | |
BII BIP Holdings LP PO Box 309 Ugland House Grand Cayman, KY1-1104 Cayman Islands |
| | | | 5.83354% | | | | Record | |
| Aaa: | | |
Obligations rated Aaa are judged to be of the highest quality, with minimal credit risk.
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| Aa: | | |
Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.
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| A: | | |
Obligations rated A are considered upper-medium grade and are subject to low credit risk.
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Baa:
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| | Obligations rated Baa are subject to moderate credit risk. They are considered medium-grade and as such may possess certain speculative characteristics. | |
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Ba:
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| | Obligations rated Ba are judged to have speculative elements and are subject to substantial credit risk. | |
| B: | | |
Obligations rated B are considered speculative and are subject to high credit risk
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Caa:
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| | Obligations rated Caa are judged to be of poor standing and are subject to very high credit risk. | |
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Ca:
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| | Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest. | |
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C:
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| | Obligations rated C are the lowest rated class and are typically in default, with little prospect for recovery of principal or interest. | |
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Note:
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| | Moody's appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category. | |
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MIG 1.
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| | This designation denotes superior credit quality. Excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing. | |
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MIG 2.
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| | This designation denotes strong credit quality. Margins of protection are ample, although not as large as in the preceding group. | |
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MIG 3.
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| | This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be narrow, and market access for refinancing is likely to be less well-established. | |
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SG.
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| | This designation denotes speculative-grade credit quality. Debt instruments in this category may lack sufficient margins of protection. | |
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VMIG 1.
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| | This designation denotes superior credit quality. Excellent protection is afforded by the superior short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand. | |
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VMIG 2.
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| | This designation denotes strong credit quality. Good protection is afforded by the strong short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand. | |
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VMIG 3.
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| | This designation denotes acceptable credit quality. Adequate protection is afforded by the satisfactory short-term credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand. | |
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SG.
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| | This designation denotes speculative-grade credit quality. Demand features rated in this category may be supported by a liquidity provider that does not have an investment grade short-term rating or may lack the structural and/or legal protections necessary to ensure the timely payment of purchase price upon demand. | |
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P-1
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| | Issuers (or supporting institutions) rated Prime-1 have a superior ability to repay short-term debt obligations. | |
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P-2
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| | Issuers (or supporting institutions) rated Prime-2 have a strong ability to repay short-term debt obligations. | |
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P-3
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| | Issuers (or supporting institutions) rated Prime-3 have an acceptable ability to repay short-term obligations. | |
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NP
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| | Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating categories. | |
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NOTE:
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| | Canadian issuers rated P-1 or P-2 have their short-term ratings enhanced by the senior-most long-term rating of the issuer, its guarantor or support-provider. | |
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AAA:
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| | An obligation rated 'AAA' has the highest rating assigned by S&P. The obligor's capacity to meet its financial commitment on the obligation is extremely strong. | |
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AA:
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| | An obligation rated 'AA' differs from the highest-rated obligations only to a small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong. | |
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A:
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| | An obligation rated 'A' is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor's capacity to meet its financial commitment on the obligation is still strong. | |
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BBB:
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| | An obligation rated 'BBB' exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. | |
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BB, B, CCC, CC and C:
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| | Obligations rated 'BB', 'B', 'CCC', 'CC', and 'C' are regarded as having significant speculative characteristics. 'BB' indicates the least degree of speculation and 'C' the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions. | |
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BB:
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| | An obligation rated 'BB' is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation. | |
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B:
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| | An obligation rated 'B' is more vulnerable to nonpayment than obligations rated 'BB', but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation. | |
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CCC:
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| | An obligation rated 'CCC' is currently vulnerable to nonpayment, and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation. | |
| CC: | | |
An obligation rated 'CC' is currently highly vulnerable to nonpayment.
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C:
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| | A 'C' rating is assigned to obligations that are currently highly vulnerable to nonpayment, obligations that have payment arrearages allowed by the terms of the documents, or obligations of an issuer that is the subject of a bankruptcy petition or similar action which have not experienced a payment default. Among others, the 'C' rating may be assigned to subordinated debt, preferred stock or other obligations on which cash payments have been suspended in accordance with the instrument's terms or when preferred stock is the subject of a distressed exchange offer, whereby some or all of the issue is either repurchased for an amount of cash or replaced by other instruments having a total value that is less than par. | |
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D:
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| | An obligation rated 'D' is in payment default. The 'D' rating category is used when payments on an obligation, including a regulatory capital instrument, are not made on the date due even if the applicable grace period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. The 'D' rating also will be used upon the filing of a bankruptcy petition or the taking of similar action if payments on an obligation are jeopardized. An obligation's rating is lowered to 'D' upon completion of a distressed exchange offer, whereby some or all of the issue is either repurchased for an amount of cash or replaced by other instruments having a total value that is less than par. | |
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Plus (+) or minus (-):
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| | The ratings from 'AA' to 'CCC' may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. | |
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N.R.:
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| | This indicates that no rating has been requested, that there is insufficient information on which to base a rating, or that Standard & Poor's does not rate a particular obligation as a matter of policy | |
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A-1:
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| | A short-term obligation rated 'A-1' is rated in the highest category by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor's capacity to meet its financial commitment on these obligations is extremely strong. | |
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A-2:
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| | A short-term obligation rated 'A-2' is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor's capacity to meet its financial commitment on the obligation is satisfactory. | |
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A-3:
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| | A short-term obligation rated 'A-3' exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. | |
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B:
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| | A short-term obligation rated 'B' is regarded as having significant speculative characteristics. Ratings of 'B-1', 'B-2', and 'B-3' may be assigned to indicate finer distinctions within the 'B' category. The obligor currently has the capacity to meet its financial commitment on the obligation; however, it faces major ongoing uncertainties which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation. | |
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B-1:
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| | A short-term obligation rated 'B-1' is regarded as having significant speculative characteristics, but the obligor has a relatively stronger capacity to meet its financial commitments over the short-term compared to other speculative-grade obligors. | |
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B-2:
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| | A short-term obligation rated 'B-2' is regarded as having significant speculative characteristics, and the obligor has an average speculative-grade capacity to meet its financial commitments over the short-term compared to other speculative-grade obligors. | |
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B-3:
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| | A short-term obligation rated 'B-3' is regarded as having significant speculative characteristics, and the obligor has a relatively weaker capacity to meets its financial commitments over the short-term compared to other speculative-grade obligors. | |
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C:
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| | A short-term obligation rated 'C' is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. | |
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D:
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| | A short-term obligation rated 'D' is in payment default. The 'D' rating category is used when payments on an obligation, including a regulatory capital instrument, are not made on the date due even if the applicable grace period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. The 'D' rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized. | |