I'm not sure if the Moody's reports have ever been discussed here (actually double checked and I posted an update from Moodys in here in May 2023) but they are probably the closest thing we'll get to actual public knowledge. They are issued annually. I have asked chat-gpt to summarize since 2019 and I will also post the latest once from May:
| Year | Rating & Outlook | Project Status | Key Risks / Issues | Financial & Contractual Highlights |
|---|
| 2019 (Y1) | Baa2 stable | Construction progressing; permitting & utility issues settled | Tight schedule; complexity may cause delays/cost overruns | Liquidity supports 18-month delay; limited third-party security; availability payments in ops phase |
| 2020 (Y2) | Baa2 stable | Construction ongoing; Sept 2021 SC target at risk | Unresolved claims with Province/Metrolinx; COVID-19 disrupts acceleration; risk of material delay | Liquidity buffer intact; DBJV credit quality at risk if costs escalate |
| 2021 (Y3 pre-downgrade) | Baa2 (still) | SC beyond Sept 2021 likely; delays mounting | No agreement on supervening events; DBJV bearing costs without compensation; COVID restrictions limit mitigations | Long stop date offers cushion; liquidity still supports 18-month delay |
| 2023 (Y3 downgrade) | Downgraded to Baa3; outlook stable | 99% complete; major works done; testing/commissioning & operator agreement outstanding | Missed Feb 2023 SC; unresolved claims strain relationships; DBJV paying LDs & extra costs | Credit facility extended to Sept 2024; long stop date Aug 2024; experienced DBJV members provide resilience |
| 2024 (Y4) | Baa3 stable (unchanged) | 99.9% complete; testing, commissioning, training underway; RSD pending | Delays persist; unresolved claims; LDs continue until PALD | Aug 2023 agreement: Province/Metrolinx milestone-based cash flow support; PALD revised (extension discussions ongoing) |
| 2025 (Y5) | Baa3 stable (unchanged) | Still 99.9% complete; driver training schedule set; trial running → RSD → SC pathway defined | Continued testing/commissioning delays; unresolved claims; LDs continue; PALD extension under discussion | Mar 2025 variation renews milestone-based cash flow support; SC payment to repay construction facility |
Toronto, May 26, 2025 -- Moody's Ratings (Moody's) has completed a periodic review of the ratings of Crosslinx Transit Solutions Gen. Partnership and other ratings that are associated with this issuer.
The review was conducted through a rating committee held on 22 May 2025 in which we reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), and recent developments.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Please see the Issuer page on https://ratings.moodys.com for the most updated credit rating action information and rating history.
Key Rating considerations and rationale are summarized below.
Crosslinx Transit Solutions Gen. Partnership's (ProjectCo) ratings, including its senior secured Baa3 rating and stable outlook, remain unchanged. The project (Eglinton Crosstown Light Rail Transit) still faces delays, but is 99.9% complete and the project parties have a path towards for reaching substantial completion (SC) to start operations. Delays are largely attributable to testing and commissioning including additional operator driver training, but a clear schedule for the additional training is in place after which the trial running will occur, followed by Revenue Service Demonstration (RSD) and SC. The SC payment will be used repay the senior construction facility among other costs following a holdback period.
A variation was signed by the parties in March 2025 under which the Province of Ontario (Aa3 stable) and Metrolinx (together, the contracting authority or CA) are providing cash flow support based on milestones achieved to Project Co (passed through to the construction contractor) to facilitate the achievement of SC. Discussions are currently ongoing to extend the Project Agreement Longstop Date ("PALD").
The construction contractor continues to pay liquidated damages (LDs), payable until the PALD. While ProjectCo and the CA have yet to reach a timely settlement on the outstanding material supervening claims made by ProjectCo, these matters will be settled after the project becomes operational.
During the operating phase, ProjectCo will be required to maintain the overall system, including the vehicles, but is not required to operate the system. It will not be exposed to any material ridership risk as its revenues will come from the CA's availability payments. All the maintenance and most of the rehabilitation obligations have been sub-contracted to a company (the Service Provider), in which affiliates of the equity sponsors each have a 25% share, for the duration of the project agreement. The sponsors have extensive experience constructing and maintaining transit systems.
I dont believe you could hide reporting a major problem like a foundation/leaking issue at Eglinton from these.
www.thestar.com
