Press Release

DBRS Morningstar Assigns Credit Ratings of “A,” Stable Trends, to Canadian National Railway Company’s New Note Issuances

November 02, 2023

DBRS Limited (DBRS Morningstar) assigned credit ratings of “A” with Stable trends to Canadian National Railway Company’s (CN or the Company; rated “A” with a Stable trend by DBRS Morningstar) USD 300 million, 5.850% Notes due 2033 and to the Company’s USD 300 million, 6.125% Notes due 2053 (together, the Notes), which settled on November 1, 2023.

The credit ratings assigned to these newly issued debt instrument are based on the credit rating of an already-outstanding debt series of the above-mentioned debt instrument.

CN intends to use the net proceeds from the Notes for general corporate purposes, which may include the redemption and refinancing of outstanding indebtedness, share repurchases, acquisitions, and other business opportunities. The Notes will rank equally with all of CN’s existing and future senior unsecured indebtedness.

CN’s credit ratings continue to be underpinned by an extensive network, diversified product and customer base, high operating efficiency, strong cash flow-generative profile, and the sector’s relative importance to the broader economy. These advantages are balanced by the high capital intensity of the railway industry, the regulatory focus on safety and service, and the railway sector’s position as a mature industry with modest long-term growth relative to other cyclical industries.

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 U.S. dollars unless otherwise noted.

DBRS Morningstar applied the following principal methodology:
-- Global Methodology for Rating Companies in the Railway Industry (March 28, 2023),

The following methodologies have also been applied:
-- DBRS Morningstar Global Criteria: Commercial Paper Liquidity Support for Nonbank Issuers (February 24, 2023),
-- DBRS Morningstar Global Criteria: Guarantees and Other Forms of Support (March 28, 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].

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577