Saputo Inc.: Rating Report

DBRS Limited (DBRS) confirmed the Issuer Rating and the Senior Unsecured Notes rating of Saputo Inc. (Saputo or the Company) at A (low) with Stable trends. The confirmations acknowledge Saputo’s debt reduction since the Murray Goulburn Co-operative Co. Limited (Murray Goulburn) acquisition (the Acquisition) and expectations that earnings will improve from the weaker-than-anticipated results as of the first half (H1) of F2019. The ratings continue to consider the Company’s strong market position, geographic diversification and strong free cash flow generation as well as the intense competitive environment, exposure to commodity price volatility and the risks of regulatory changes.