Toromont Industries Ltd.: Rating Report

On August 28, 2019, DBRS Limited (DBRS) confirmed the Issuer Rating and Senior Unsecured Debentures rating of Toromont Industries Ltd. (Toromont or the Company) at BBB (high) with Stable trends. The ratings are supported by Toromont’s robust business risk profile as an exclusive Caterpillar equipment dealer in all of Eastern Canada and the Company’s solid market position across its sales territories. The confirmation also reflects the fact that the Company has maintained a strong financial profile following the acquisition of the Hewitt Group of companies (the Acquisition), which closed in October 2017. The Company’s credit metrics have improved considerably since the last review, mainly as a result of deleveraging and increased earnings from both the legacy businesses (defined as all continuing businesses operating prior to the Acquisition) and the acquired Hewitt operations (Toromont QM).