DBRS Assigns A (low) Rating to CN’s US$700 Million Note Issuance

DBRS has today assigned a rating of A (low) to the US$700 million in senior unsecured notes (the Notes) issued by Canadian National Railway Company (CN or the Company). The trend is Stable. The Notes were issued in two tranches – US$300million 1.45% notes due on December 15, 2016, and US$400 million 2.85% notes due on December 15, 2021 – and will rank pari passu with all other senior unsecured indebtedness of the Company. The Notes were issued under the Company’s $2.5 billion shelf prospectus, which became effective on November 4, 2011, and pursuant to an indenture dated as of June 1, 1998. The transaction is expected to settle on November 15, 2011.

Proceeds from the issuance are expected to be used for debt repayment, including outstanding commercial paper, and for general corporate purposes, including financing the Company’s share repurchase program.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Companies in the North American Railway Industry, which can be found on our website under Methodologies.