DBRS Assigns A (low) Rating with Stable Trend on Cameco Corporation’s $500 Million New Debt Issue

DBRS has today assigned its rating of A (low) with a Stable trend on the $500 million of senior unsecured debentures (the Cameco New Notes) to be issued by Cameco Corporation (Cameco or the Company) following the pricing of the Cameco New Notes and the filing of a final prospectus supplement dated November 7, 2012 to the Company’s Short Form Base Shelf Prospectus dated May 29, 2012.

The Cameco New Notes will consist of $400 million aggregate principal amount of 3.75% senior unsecured debentures (Series E debentures) due November 14, 2022, and $100 million aggregate principal amount of 5.09% senior unsecured debentures (Series F debentures) due November [14], 2042.

The Cameco New Notes will be direct, unsecured obligations of Cameco and will rank equally and rateably with one another and with all other present and future unsecured and unsubordinated indebtedness of Cameco, except to the extent prescribed by law.

They were offered and sold in Canada by way of a prospectus supplement to the Company’s Short Form Base Shelf Prospectus dated May 29, 2012, and will be issued under a trust indenture dated July 12, 1999, between Cameco and CIBC Mellon Trust Company (rated AA (low) by DBRS), as trustee, as supplemented by supplemental trust indentures related to the Cameco New Notes. The Cameco New Notes issued in Canada will be governed by and construed in accordance with the laws of the Province of Saskatchewan and the laws of Canada applicable therein.

The offering of the Cameco New Notes is expected to close on or about November 14, 2012, subject to customary closing conditions. Cameco intends to use the net proceeds of the issue to strengthen its capital position and enhance its financial flexibility in order to support planned expansion of its uranium production capacity and for general corporate purposes.

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

The applicable methodologies are Rating Companies in the Mining Industry (June 2011) and Rating Companies in the Industrial Products Industry (June 2011), which can be found on our website under Methodologies.