Press Release

DBRS Morningstar Assigns Rating of BBB (high) with a Stable Trend to Saputo Inc.’s New Debt Issuance

November 19, 2020

DBRS Limited (DBRS Morningstar) assigned a rating of BBB (high) with a Stable trend to Saputo Inc.’s (Saputo or the Company; rated BBB (high) with a Stable trend by DBRS Morningstar) $350 million 1.415% Series 8 Medium-Term Notes (the Notes) due June 19, 2026, which closed on November 19, 2020. The rating assigned to this newly issued debt instrument is based on the rating of an already-outstanding debt series of the above-mentioned debt instrument.

Saputo will use the proceeds to repay a portion of the third tranche of the nonrevolving term facility made available to the Company in connection with its acquisition of Dairy Crest Group plc and for general corporate purposes. The Notes will rank equally and pari passu with each other and with the notes of every other series, as well as all other existing and future unsecured and unsubordinated indebtedness of the Company.

Saputo’s current ratings continue to be supported by its leading market position, diversification of operations by distribution channel and geography, and strong free cash flow generation. The ratings also continue to reflect the Company’s exposure to volatile commodity prices, the highly competitive industry, and the risks associated with the mature markets in which Saputo operates, all of which are highly regulated.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at:

All figures are in Canadian dollars unless otherwise noted.

The principal methodologies are Rating Companies in the Consumer Products Industry (July 30, 2020), DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 2, 2020), and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (January 22, 2020), which can be found on under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release:

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

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

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