DBRS Assigns “A” Rating to Deere & Company’s New Debt Issuance

DBRS has assigned an “A” rating with a Stable trend to Deere & Company’s (Deere or the Company) new issue of $1.25 billion Senior Unsecured Medium-Term Notes (the Notes). The Notes will be issued in two tranches – $750 million in 4.375% Notes due 2019, and $500 million in 5.375% Notes due 2029. The Notes will rank pari passu with all senior unsecured debt obligations of Deere, with proceeds from the issuance to be used for general corporate purposes that may include debt reduction and future investments.

The impact of the debt issuance on Deere’s financial profile is modest. The Company’s core credit metrics will weaken from the increase in gross debt levels, but remain within the range of acceptability for its rating. Deere’s currently strong liquidity position will be further enhanced, although DBRS expects a large share of the proceeds to be eventually used toward future growth initiatives. The Company was also able to issue the Notes at historically attractive rates, providing a relatively low-cost source of long-term funding.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating the Industrial Products Industry, which can be found on our website under Methodologies.

This is a Corporate rating.