DBRS confirms Finning

DBRS said it confirmed the A (low) senior debentures and medium-term notes rating and the R-1 (low) commercial-paper rating of Finning International Inc.

The confirmations follow news that the company plans to acquire the distribution rights of Bucyrus International from Caterpillar Inc. for $465 million to be funded with debt.

The trend is stable.

The confirmation reflects Finning's stronger business profile, although DBRS said it does recognize that the company's projected financial profile is weak for the A (low) rating.

The agency said it expects Finning to improve its financial ratios in the coming quarters toward an adjusted debt-to-EBITDA level of about 2.5x.

DBRS also said it expects the company to further improve its financial ratios to levels compatible with the A (low) level by 2013.

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