Stormy weather: Why DBRS’s founder spent his money backing a Newfoundland musical

By then, though, the founder of Dominion Bond Rating Service believes Newfoundland and Labrador will be teetering on the brink of bankruptcy, in dire need of a bailout from Ottawa. No Change in the Weather is his way of sounding the alarm. “Newfoundland debt trades now as though it was Canada sovereign debt,� he says. “If it was independent right now, it’d be trading probably into non-investment grade BB. And the interest rate that they’re ultimately going to have to pay is probably going to go up 300 to 500 basis points. They’re going to trade as junk debt if Ottawa doesn’t help them. It’s as simple as that.� Read More