Fitch Ratings has downgraded Mountain Province Diamonds Inc.'s Issuer Default Rating (IDR) to 'RD' from 'C' following the successful exchange of its 8% senior secured second lien notes due Dec. 15, 2022, with new loan notes in what Fitch views as a distressed debt exchange.

The IDR has been withdrawn for commercial reasons.

Fitch's most recent rating action for Mountain Province was on Nov. 1, 2022, when it downgraded the IDR to 'C' from 'CC'.

Ratings withdrawn for commercial reasons.

Key Rating Drivers

Not applicable as the ratings have been withdrawn.

RATING SENSITIVITIES

Not applicable as the ratings have been withdrawn.

Best/Worst Case Rating Scenario

International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

Issuer Profile

Mountain Province holds a 49% interest in the Gaucho Kue diamond mine, 51% owned and operated by De Beers Canada. Mountain Province also owns a 100% interest in the Kennady North diamond project located in Canada's Northwest Territories, adjacent to the GK mine.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.

Following the withdrawal of ratings for Mountain Province Diamonds Inc., Fitch will no longer be providing the associated ESG Relevance Scores.

RATING ACTIONS

Entity / Debt

Rating

Prior

Mountain Province Diamonds Inc.

LT IDR

RD

Downgrade

C

LT IDR

WD

Withdrawn

RD

Page

of 1

VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

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