Finning International Inc.: Rating Report

On August 10, 2020, DBRS Limited (DBRS Morningstar) confirmed the Issuer Rating and Senior Debentures and Medium-Term Notes rating of Finning International Inc. (Finning or the Company) at BBB (high) and the Company's Commercial Paper rating at R-2 (high), both with Stable trends. Finning's operating results and key credit metrics weakened in H1 2020 because of a sharp deterioration in the conditions in all of its sales regions caused by lockdowns to control the spread of the Coronavirus Disease (COVID-19). Nevertheless, the Company's credit profile (a combination of its business profile and financial profile) remains acceptable for the current ratings, despite weaker debt coverage ratios. Furthermore, DBRS Morningstar expects the Company's operating results to start recovering in Q4 2020 and to restore the key debt coverage ratios within the current rating range towards the end of 2021.