DBRS Assigns Rating of BBB (high), Stable Trend, to Nordstrom, Inc.’s New Debt Issuance

DBRS Limited (DBRS) has today assigned a rating of BBB (high) with a Stable trend to Nordstrom, Inc.’s (Nordstrom or the Company) debt issuance announced on March 6, 2017.

The issuance is made up of the following two tranches (collectively, the Notes):
(1) $350 million, 4.00% Senior Unsecured Notes due March 15, 2027; and
(2) $300 million, 5.00% Senior Unsecured Notes due January 15, 2044.

DBRS notes that the Notes due in 2044 reflect the reopening of the outstanding Notes due in 2044. The Company last accessed the market in December 2013 with the original issuance of the 30-year Notes due in 2044.

The Notes will be unsecured senior obligations and will rank equally in right of payment with all of Nordstrom’s other unsecured and unsubordinated debts. DBRS expects Nordstrom to use the proceeds from this issuance to repay or retire all $650 million of the aggregate principal amount of outstanding 6.25% Senior Notes due January 15, 2018. Any remaining net proceeds will be used for general corporate purposes, which may include the financing of capital expenditures and working capital needs.

Nordstrom’s ratings continue to be supported by Nordstrom’s scale and market position as one of the largest department store chains in the United States and its robust reputation for customer service and merchandising. The ratings also consider the intense competition and the Company’s exposure to shifting consumer trends.

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

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

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