Press Release

Morningstar DBRS Assigns Provisional Credit Rating of (P) BBB (low) With a Stable Trend on Cargojet Inc.'s Senior Unsecured Notes

Services
June 26, 2025

DBRS Limited (Morningstar DBRS) assigned a provisional credit rating of (P) BBB (low) to Cargojet Inc's (Cargojet or the Company) proposed $250 million Senior Unsecured Notes issuance (the Proposed Notes) due 2030. The Proposed Notes, issued on a private placement basis, will be unsecured obligations ranking equal with all existing and future unsecured, unsubordinated indebtedness of Cargojet. The Proposed Notes will be jointly and severally guaranteed, on a senior unsecured basis, by each of the Issuer's material subsidiaries. The proceeds of the Proposed Notes are expected to be used to repay amounts related to the Company's existing debt obligations under the credit facilities, to redeem the June 2026 5.25% Senior Unsecured Hybrid Debentures and for general corporate purposes.
For more information on the related Issuer Rating including the key credit considerations, credit rating drivers, credit rating rationale, the Issuer's Intrinsic Assessment and related disclosures please refer to Cargojet's Issuer Rating Press Release (June 19, 2025), https://dbrs.morningstar.com/research/456586.

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 (May 16, 2025) https://dbrs.morningstar.com/research/454196.

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

Morningstar DBRS applied the following principal methodology: Global Methodology for Rating Companies in Services Industries (February 3, 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 Environmental, Social, and Governance Factors in Credit Ratings (May 16, 2025)
https://dbrs.morningstar.com/research/454196

Morningstar DBRS Global Corporate Criteria (February 3, 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 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.

For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings.

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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