DBRS Assigns A (low) Rating to Magna International Inc. New Issue

DBRS Limited (DBRS) has today assigned a rating of A (low) with a Stable trend to the Senior Notes (the Notes) to be issued on December 11, 2015, by Magna International Inc. (Magna or the Company). The Notes will have an aggregate principal amount of $425 million and will mature on December 15, 2022.

The Notes will constitute senior unsecured obligations of Magna and will rank equally with all existing and future unsecured obligations of the Company.

DBRS notes that the use of proceeds of the Notes will be for general corporate purposes, and may include funding of the Company’s acquisition of the Getrag Group of Companies; (for details, please refer to DBRS’s associated press release dated July 17, 2015 using the link to the right). As previously communicated by DBRS, (please refer to DBRS’s Rating Report on Magna dated July 14, 2015), Magna has been progressively adopting a slightly less conservative financial policy, with the Company having previously outlined a targeted debt (adjusted for operating leases)-to-EBITDA ratio within the range of 1.0 times (x) to 1.5x by year-end 2015, although DBRS notes that this range remains well consistent with the current ratings.

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

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

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.