DBRS Assigns Rating of BBB, Stable Trend to METRO INC.’s New Debt Issuance

DBRS Limited (DBRS) has today assigned a rating of BBB with a Stable trend to METRO INC.’s (Metro or the Company) new $400 million floating-rate Series E Senior Unsecured Notes Issuance (the Notes), which closed on February 27, 2017.

The Notes are direct unsecured obligations of Metro and rank pari passu with all other unsecured and unsubordinated indebtedness of Metro. The Company intends to use the net proceeds for the repayment of indebtedness outstanding under its credit facility and for general corporate purposes.

Metro’s ratings continue to be supported by its market positions in Ontario and Québec, its diversified store formats and banners, its good locations and its history of disciplined financial management. The Company’s ratings also reflect intense competition in food retail in Canada, its geographic concentration in Canada’s most competitive markets, the risk of more aggressive financial management and high levels of union penetration.

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

The principal methodology is Rating Companies in the Merchandising Industry, which can be found on dbrs.com under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.