DBRS Morningstar 2023 Credit Outlook

The Canadian housing market has seen great volatility as the economy reboundedfrom the pandemic, surging by approximately 50% from pre-pandemic levels and then abruptly going into a downturn starting in March alongside the start of a rapid and aggressive interest rate tightening cycle by the Bank of Canada.

This session will discuss how elevated household debt levels and housing prices remain key vulnerabilities in the Canadian financial system, touching on potential impacts, vulnerabilities and risks to credit quality and the economy.

Doug Turnbull sits down with Kannan Amaresh to discuss everything from his personal and professional life to geopolitical tensions and what it takes to grow an IT company globally.

The world economy is slowing amid interest rate hikes by major central banks and a sharp escalation in geopolitical risks. Most major economies have largely recovered from the pandemic, but the effects of COVID-19 on supply chains, labor markets and migration have not fully dissipated. This session will focus on the positive and negative factors affecting the outlook for sovereign credit ratings as we head into 2023.

Simba Murahwi, Vice President, Canadian Structured Finance, DBRS Morningstar
JJ Mai, Managing Director, Funding, Laurentian Bank of Canada
Terry Ritchie, Director, Asset Securitization, TD Securities

This panel will review how the current rates of inflation and rising interest rates are impacting Canadian Structured Finance. The topics of discussion will be sub-divided as follows:
-Inflation, Interest rates and Canadian household finances
-Asset Prices
-Performance
-Issuance and Market Dynamics
-Outlook

With the intensifying climate consciousness among global consumers and regulators hastening the transition away from fossil fuels to green energy sources, how should developers and investors think about tackling the challenges of integrating renewable power into the grid?

We discuss credit implications of currently available tools as well as potential future opportunities.

The evolution of ESG has created numerous risks and opportunities impacting the ownership of income producing commercial real estate, from a global perspective. This panel will review these impacts, touching on climate risks, sustainability linked financings, new builds vs retrofits, and impact on profit margins. Perspectives from real estate and ESG experts will enhance the conversation.

Christopher Tsichlas, Senior Vice President, Real Estate and Public Finance, DBRS Morningstar
Aayush Tandon, ESG Analyst, Credit Research, CIBC Asset Management
Shiva Mitra, ESG Research Lead Analyst, Insurance, Real Estate and Asset Management, Sustainalytics

While mid-year earnings in the Canadian telecommunications industry were solid and 2022 guidance was maintained, the sector is not completely immune to inflationary pressure, nor the impact related to an economic softening. However, structural factors within the industry and the growing integration of telecommunications services into almost all aspects of modern society are expected to mute the financial impact of these factors on the industry, particularly in the near term. Further, DBRS Morningstar considers most telecommunications providers to be well situated in their current rating categories such that they are expected to be able to navigate a certain amount of economic headwind over the medium term.

DBRS Morningstar’s insurance analysts discuss how interest rate increases, inflationary trends, housing market declines, climate change, and recent financial market volatility affect our rating views on the different segments of the Canadian insurance industry: Life and Health, Property and Casualty, and Mortgage Insurance.
Our Canadian insurance ratings outlook, including perspectives on the implications of new IFRS 17 insurance accounting standard, which comes into effect in January 2023, will conclude the session.