Moody’s rates Sysco Canada notes A3

Moody's Investors Service said it assigned an A3 rating to Sysco Canada, Inc.'s proposed C$500 million senior unsecured note offering.

In addition, the agency affirmed Sysco Corp.'s A3 senior unsecured rating and Prime-2 short-term commercial paper rating.

The outlook is stable.

“The A3 rating assigned to the proposed notes reflects Sysco Canada material scale in regards to revenues and earnings and reasonable level of other liabilities as well as these notes being the only debt at this entity,” the agency said in a news release.

“The notes also benefit from a primary guarantee from Sysco EU II Sarl (Sysco EU) and are also guaranteed by Sysco Corp. Overall, we believe all of these benefits help to mitigate the absence of the same guarantees provided to Sysco's existing senior unsecured note holders which benefit from guarantees of material domestic subsidiaries.”

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