Press Release

DBRS Morningstar Assigns Rating of BBB, Stable to Canadian Tire Corporation, Limited’s New Debt Issuance

September 14, 2023

DBRS Limited (DBRS Morningstar) assigned a rating of BBB with a Stable trend to Canadian Tire Corporation, Limited’s (Canadian Tire or the Company; rated BBB with a Stable trend by DBRS Morningstar) $400 million, 5.372% Series G Medium-Term Notes (Notes) due September 16, 2030. DBRS Morningstar also assigned a rating of BBB with a Stable trend to the Company’s $200 million Floating Rate Series H Notes due September 14, 2026. The ratings assigned to these newly issued Notes are based on the ratings of an already-outstanding debt series of the above-mentioned debt instruments.

The Notes will be direct unsecured obligations of Canadian Tire, and will rank equally and pari passu with each other and with every other series of Notes issued by the Company and with Canadian Tire’s all other present and future unsubordinated and unsecured indebtedness. Canadian Tire intends to use the net proceeds from the Notes for the repayment of short-term borrowings and for general corporate purposes.

Canadian Tire’s ratings reflect its strong brands and leading market position, geographic diversification, and real estate ownership and control through CT Real Estate Investment Trust (CT REIT; rated BBB with a Stable trend by DBRS Morningstar). The ratings also reflect the intense competition, risks related to the Company's ambitions for growth, and Canadian Tire’s cyclical financial services business.

There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

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 (July 4, 2023).

All figures are in Canadian dollars unless otherwise noted.

DBRS Morningstar applied the following principal methodology:
-- Global Methodology for Rating Companies in the Merchandising Industry (; July 21, 2023).

The credit rating methodologies used in the analysis of this transaction can be found at:

A description of how DBRS Morningstar analyzes corporate finance transactions and how the methodologies are collectively applied can be found at:

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

DBRS Morningstar had access to the accounts, management and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

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

Information regarding DBRS Morningstar credit ratings, including definitions, policies, and methodologies, is available on or contact us at [email protected].

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