New pension law to impact corporate credit: Moody’s

James Langton of Investment Executive reports on Moody’s warnings that new federal legislation granting super-priority status to unfunded defined benefit pension liabilities in insolvencies from April 2027 will increase expected losses for secured and unsecured creditors, potentially pressure credit ratings and raise borrowing costs for Canadian companies with DB exposure, prompting tighter lending terms and enhanced covenant protections.

Read more.