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) $300 million 1.922% Senior Unsecured Notes (the Notes) due December 2, 2024, which closed on November 30, 2021. 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.

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 the repayment of the Series C Senior Unsecured Notes due December 1, 2021, and for general corporate purposes.

Metro'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 operating environment, Metro’s geographical concentration, and the high level of union penetration.

ESG CONSIDERATIONS
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 https://www.dbrsmorningstar.com/research/373262.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodology is Rating Companies in the Merchandising Industry (July 26, 2021; https://www.dbrsmorningstar.com/research/382073), which can be found on dbrsmorningstar.com 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; https://www.dbrsmorningstar.com/research/373262).

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 www.dbrsmorningstar.com or contact us at [email protected].

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