DBRS upgrades Toromont

DBRS said it upgraded Toromont Industries Ltd.’s issuer and senior unsecured debenture ratings to A (low) from BBB (high). The trend has been changed to stable from positive.

“The rating actions reflect Toromont’s improved operating performance over the past few years and its successful deleveraging after the debt-financed acquisition of Hewitt in 2017, which together have caused the financial risk profile to migrate above the previously assigned ratings,” the agency said in a press release.

On June 29, DBRS indicated it would likely raise Toromont’s ratings if its operating performance remained relatively stable throughout fiscal year 2021 and credit metrics remained in the high end of the A range.

DBRS said it sees Toromont’s revenues continuing the grow in F2022, “albeit at a moderated rate compared with F2021, supported by solid levels of construction activities from infrastructure, commercial, and general construction, as well as from improving mining activities driven by high commodity prices,” the agency said.

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