DBRS Assigns Rating of BBB (high), Stable Trend, to Canadian Pacific Railway Company Debt Issuance

DBRS Limited (DBRS) has today assigned a rating of BBB (high) with a Stable trend to the $1.2 billion Senior Unsecured Notes (the Notes) of Canadian Pacific Railway Company (CPR or the Company). Net proceeds from the Notes issuance are intended to be used for general corporate purposes, including repayments of indebtedness borrowed to fund share repurchase under the Company’s normal-course issuer bid and capital investments. Until such repayments, the proceeds may be invested in short-term investment-grade securities or bank deposits.

The Notes comprise $300 million 4.8% fixed-rate notes due September 15, 2035, and $900 million 6.125% fixed-rate notes due September 15, 2115, and will be direct, unsecured and unsubordinated obligations of CPR ranking pari passu with all other unsecured and unsubordinated indebtedness of the Company. The Notes were issued under the base shelf prospectus dated August 31, 2015, which allows for offerings of up to $1.5 billion of debt securities. The debt securities will be issued under a trust indenture between the Company and its trustee, the form of which has been filed with the U.S. Securities and Exchange Commission.

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

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are Rating Companies in the Railway Industry (June 2015) and DBRS Criteria: Commercial Paper Liquidity Support for Non-Bank Issuers (April 2015), which can be found on our website under Methodologies.