Standard & Poor’s upholds the Caisse de dépôt et placement du Québec’s high credit ratings and confirms its adequate liquidity position

In a report made public September 28, 2007, rating agency Standard & Poor’s upheld the short-term (A-1+) and long-term (AAA) credit ratings of the Caisse de dépôt et placement du Québec and its subsidiary CDP Financial, both with a stable outlook. The agency arrived at this decision after a study of the commercial paper market and the Caisse’s situation. The agency’s analysis indicates that the Caisse has ample liquid assets that will enable it to meet its liquidity requirements over the short-, medium- and long-term, despite the liquidity crisis related to third-party asset-backed commercial paper.

This assessment corroborates the Caisse’s position that it has sufficient liquid assets to handle its own needs as well as those of its depositors, whether they are insurance or pension plans. It should be pointed out that the Caisse plans to provide an update on its commercial paper portfolio when it makes its annual disclosure of holdings.

These credit ratings are the highest assigned by Standard & Poor’s, which points out that they are a reflection of the Caisse’s effective governance and strong financial position.

The Caisse and CDP Financial have been assigned the highest issuer credit ratings by Moody's Investors Service (Moody’s), Standard and Poor's (S&P) and Dominion Bond Rating Service (DBRS). For its short-term notes program, CDP Financial has obtained a rating of P-1 from Moody's, A-1 (high) from S&P and R-1 (high) from DBRS.

As at December 31, 2006, CDP Financial had issued short-term notes in the amount of CA$4.1 billion and medium-term notes worth CA$1.5 billion. CDP Financial’s financing programs are guaranteed by the Caisse.

La Caisse de dépôt et placement du Québec is a financial institution that manages funds for primarily public and private pension and insurance plans. As at December 31, 2006, it held CA$143.5 billion in net assets. One of the leading institutional fund managers in Canada, the Caisse invests in the main financial markets, as well as in private equity and real estate.