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

DBRS Limited (DBRS Morningstar) assigned a rating of BBB with a Stable trend to METRO INC.’s (METRO or the Company; rated BBB with a Stable trend by DBRS Morningstar) $400 million 3.413% Senior Unsecured Notes (the Notes) due February 28, 2050, which closed on February 26, 2020. The rating being assigned is based upon the rating on already-outstanding series of the above-mentioned debt instrument.

The Notes are direct unsecured obligations of METRO and rank pari passu with all other unsecured and unsubordinated indebtedness of the Company. METRO intends to use the net proceeds from the Notes for repayment of indebtedness outstanding under the Series E Senior Unsecured Notes due February 27, 2020, and for general corporate purposes.

The Company’s ratings continue to reflect its well-established brand and market position in Ontario and Québec, diversified formats and banners, and disciplined financial management. The ratings also consider the intensely competitive environment, METRO’s geographical concentration, and the high level 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 & Criteria.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at [email protected].

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada