ON universities face pension deficits, other financial challenges: DBRS

November 2, 2016

Ontario universities face a number of financial pressures, including pension solvency deficits, which are being aggravated by systemic challenges according to a commentary by debt-rating service DBRS Ltd. Despite these challenges, however, DBRS stated that “Ontario university credit profiles have remained resilient, and DBRS does not expect downward rating actions in the near term.” After reflecting on how universities’ pension plans have been impacted by low interest rates, the organization calls on the institutions to make fundamental changes to their plan design in order to remain sustainable, and recommends that individual institutions combine separate plans into a single, sector-wide plan. Financial Post