DBRS Morningstar Assigns Rating of BBB, Stable Trend, to Dollarama Inc.’s New Debt Issuance

DBRS Limited (DBRS Morningstar) assigned a rating of BBB with a Stable trend to Dollarama Inc.’s (Dollarama or the Company) $300 million 1.505% Senior Unsecured Notes (the Notes) due September 20, 2027, which closed on September 18, 2020. The rating assigned to this newly issued debt instrument is based on the rating of an already-outstanding debt series of the above-mentioned debt instrument.

Dollarama intends to use the net proceeds of the offering to repay the $300 million aggregate principal amount of its outstanding Series 3 floating-rate senior unsecured notes due February 1, 2021, and for general corporate purposes. The Notes are direct unsecured obligations of Dollarama and rank pari passu with all other unsecured and unsubordinated indebtedness of Dollarama.

The Company’s ratings reflect its strong brand and market position, efficient operations, and national diversification while also considering the competitive retail environment and dependence on supply chain management to maintain low prices.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

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

The principal methodologies are Rating Companies in the Merchandising Industry (July 30, 2020) and DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 25, 2019), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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