Saputo Inc.: Rating Report

On December 8, 2020, DBRS Limited (DBRS Morningstar) confirmed Saputo Inc.'s (Saputo or the Company) Issuer Rating and Senior Unsecured Notes rating at BBB (high) with Stable trends. The rating actions reflect DBRS Morningstar's expectation that the Company's earnings profile will remain within the BBB (high) rating category in the medium term, despite the near-term pressure on earnings as a result of the Coronavirus Disease pandemic. The rating confirmations also incorporate DBRS Morningstar's expectation that, through its operating performance and financial management, Saputo's credit metrics will improve to a level more appropriate for the current rating category in the medium term following a delay in its deleveraging strategy caused by the coronavirus pandemic. 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 regulated.