DBRS Assigns Ratings of “A”/R-1 (low) with Stable Trends to Nissan Canada Inc. and Discontinues Ratings of Nissan Canada Financial Services Inc.

DBRS Limited (DBRS) assigned Senior Unsecured Debt and Commercial Paper ratings of “A” and R-1 (low) with Stable trends, respectively, to Nissan Canada Inc. (NCI or the Company). Concurrently, DBRS discontinued and withdrew its ratings on Nissan Canada Financial Services Inc. (NCFS) following the (vertical short-form) amalgamation of NCFS and NCI under the “Canada Business Corporations Act” with the resulting entity continuing as NCI.

Under the new structure, NCI is liable for all outstanding obligations of NCFS in addition to being liable for its own obligations. NCI has also taken over functions performed by NCFS, replaced NCFS as the issuer of debt and taken over NCFS’s role in dealing with clearing houses and payment associations. The new structure does not affect the ratings of Nissan Motor Co., Ltd. (Nissan; rated “A” with Stable trends by DBRS).

NCI’s ratings are consistent with DBRS’s credit ratings on the Company’s ultimate parent, Nissan. The rating equivalency takes into account the Keepwell Agreement dated September 21, 2000, between Nissan and NCI in addition to DBRS’s assessment of NCI as a strategically important subsidiary of Nissan.

For more information on Nissan, please refer to DBRS’s press release on Nissan dated September 13, 2018, in addition to the rating report dated September 20, 2018.

Notes:
The principal methodologies are Rating Companies in the Automotive Manufacturing and Supplier Industries (October 2018), DBRS Criteria: Commercial Paper Liquidity Support for Non-Bank Issuers (March 2019) and DBRS Criteria: Guarantees and Other Forms of Support (January 2019), which can be found on dbrs.com under Methodologies & Criteria.

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.com.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada