Transcontinental Inc.: Rating Report

On February 19, 2020, DBRS Limited (DBRS Morningstar) confirmed the Issuer Rating of Transcontinental Inc. (Transcontinental or the Company) at BBB (low) with a Stable trend. The Senior Unsecured Debt has been discontinued as the notes have been repaid. The rating confirmation reflects the strong operating performance in the Packaging segment, while acknowledging softer than expected performance in the Print segment during F2019. The rating reflects Transcontinental’s continued strong market position in the Print industry, attractive outlook in the Packaging segment, diversified customer base and product offering, and strong free cash flow (FCF) generating capacity. The rating also continues to consider the structural shift from print to digital media and the risks associated with growth through acquisition.