DBRS Assigns A (low) Rating with Stable Trend to CN Debt Issuance

DBRS has today assigned a rating of A (low) with a Stable trend to the 2.75% $250 million Senior Unsecured Notes (the Notes) issued by Canadian National Railway Company (CN or the Company). The Notes will mature on February 18, 2021, and will be direct, unsecured and unsubordinated obligations of CN and rank pari passu with all other unsecured and unsubordinated indebtedness of the Company.

The Notes will be issued under the base shelf prospectus dated December 3, 2013, which allows for offerings of up to $3 billion of debt securities, and are pursuant to CN’s July 12, 2013, trust indenture.

The Company intends to use the funds for general corporate purposes, including reduction of outstanding indebtedness and share repurchases. DBRS notes that CN’s credit metrics remain compatible with the current rating level, despite the modest increase in debt.

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

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