Press Release

DBRS Morningstar Assigns Rating of B (high), Stable to Kruger Products L.P.’s New Issuance

April 09, 2021

DBRS Limited (DBRS Morningstar) assigned a rating of B (high) with a Stable trend to Kruger Products L.P.’s (KPLP or the Company; rated BB with a Stable trend by DBRS Morningstar) $135 million, 5.375% Senior Unsecured Notes (the Notes) due April 9, 2029, which closed on April 8, 2021. The Recovery Rating on the Notes is RR6. 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.

KPLP will use the proceeds from the Notes’ issuance to reduce the outstanding balance under the Company’s senior secured revolving credit facility and for general corporate purposes. The Notes will be senior unsecured obligations of KPLP.

KPLP’s ratings continue to be supported by its strong brands and leading market position in the Canadian tissue products market, stable demand, and significant barriers to entry. The ratings also continue to reflect the intense competition, input cost volatility, and product/market concentration.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings 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: Guarantees and Other Forms of Support (January 14, 2021;, and DBRS Morningstar Criteria: Recovery Ratings for Non-Investment-Grade Corporate Issuers (August 24, 2020;, which can be found on under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (February 3, 2021;

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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