DBRS Assigns A (low) Rating to Finning International Inc.’s New $600 Million Medium-Term Notes Program, Stable Trend

DBRS has today assigned a rating of A (low) to Finning International Inc.’s (Finning or the Company) medium-term notes (MTN) program as per the final short form base shelf prospectus filed yesterday. The trend is Stable. DBRS notes that the purpose of the shelf is to repay existing indebtedness (including that under Finning’s credit facility) and to meet working capital requirements. However, significant additional borrowings above what is required to finance the Bucyrus International Inc. distribution business in Finning Canada’s territory could result in negative rating actions.

The issuance of MTNs under this $600 million program will be the direct, unsecured and unsubordinated obligations of Finning and will rank equally and pari passu with all other unsecured and unsubordinated indebtedness of Finning. Any MTNs will be issued under its trust indenture dated March 22, 1994.

As ratings are subject to change, subsequent assignment of ratings for Finning will be provided by DBRS as MTNs are issued under this program.

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

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