Morningstar DBRS Finalizes Provisional Credit Ratings of BBB (high), Stable Trends on TR Finance LLC's Unsecured Medium-Term Notes and Unsecured Debentures and Assigns Commercial Paper Rating of R-2 (high)

DBRS Limited (Morningstar DBRS) finalized its provisional credit ratings of BBB (high) with a Stable trend on TR Finance LLC's issuance of Unsecured Medium-Term Notes (the Notes) and Unsecured Debentures (the Debentures). Additionally, Morningstar DBRS assigned a credit rating of R-2 (high) to TR Finance LLC's Commercial Paper. The credit ratings are based on Thomson Reuters Corporation (TRC)'s Issuer Rating, Unsecured Medium-term Notes, Unsecured Debentures, and Commercial Paper credit ratings, which remain unchanged at BBB (high), and R-2 (high) respectively.

The Notes and Debenture credit ratings listed above apply to TR Finance LLC's 3.35% Notes due 2026, 5.50% Debentures due 2035, 5.85% Notes due 2040, 4.50% Notes due 2043, and 5.65% Notes due 2043.

The new Notes and Debentures (New Notes) are part of an exchange offering in which the new issuances will be used to repay and cancel the existing equivalent Notes and Debentures issued out of Thomson Reuters Corporation (the Old Notes). Thomson Reuters will not receive any net cash proceeds on a consolidated basis from the issuance of the New Notes in connection with the Exchange Offers. In exchange for delivering the New Notes, which will satisfy TRC's obligation to repay the principal amount of the tendered Old Notes, TRC will receive such tendered Old Notes, and such Old Notes will be cancelled shortly after the completion of the Exchange Offers.

The Commercial Paper, Notes and Debentures are senior unsecured obligations, and effectively rank pari passu in right of payment with the existing and future senior unsecured indebtedness of Thomson Reuters Corporation, and TR Finance LLC. The Commercial Paper, Notes and Debentures are unconditionally guaranteed, jointly and severally, on an unsecured basis by West Publishing, Thomson Reuters Applications and Thomson Reuters (Tax and Accounting) (the Subsidiary Guarantors) and Thomson Reuters Corporation. Furthermore, the Old Notes and Commercial Paper issued by TRC have also been guaranteed by the Subsidiary Guarantors.

The Commercial Paper rating is based on the Amended and Restated Thomson Reuters Dealer Agreements, dated March 20, 2025; The Private Placement Memorandum, dated March 20, 2025; and information provided by Thomson Reuters to Morningstar DBRS as of March 19, 2025.

The credit ratings remain supported by Thomson Reuters well-entrenched market positions, customer and product diversification, and strong free cash flow generation. The credit ratings also take into consideration the intense competition within industries the Company operates in, the need for constant client-focused product innovation, and risks associated with dispositions and growth through acquisitions.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS

There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024) https://dbrs.morningstar.com/research/437781.

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

Morningstar DBRS applied the following principal methodology:

Global Methodology for Rating Companies in Services Industries (February 03, 2025)
https://dbrs.morningstar.com/research/447184

Morningstar DBRS credit ratings may use one or more sections of the Morningstar DBRS Global Corporate Criteria (February 3, 2025) - https://dbrs.morningstar.com/research/447186 which covers, for example, topics such as holding companies and parent/subsidiary relationships, guarantees, recovery, and common adjustments to financial ratios.

The following methodologies have also been applied:

Morningstar DBRS Criteria: Approach to ESG Factors in Credit Ratings (August 13, 2024)
https://dbrs.morningstar.com/research/437781

Morningstar DBRS Global Corporate Criteria (February 03, 2025)
https://dbrs.morningstar.com/research/447186

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

A description of how Morningstar DBRS analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://dbrs.morningstar.com/research/431153.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info-DBRS@morningstar.com.

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.

Morningstar DBRS did have 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. Morningstar DBRS trends and credit ratings are under regular surveillance.

Information regarding Morningstar DBRS credit ratings, including definitions, policies, and methodologies, is available on dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

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