Report
Amaury Baudouin ...
  • Charles Halam-Andres
  • Raja Kalra
  • Timothy O'Brien

DBRS Morningstar Reviews Canadian National Railway Company’s New Strategic Plan

On September 17, 2021, Canadian National Railway Company (CN or the Company) reaffirmed its 2021 outlook and unveiled its strategic roadmap. The key announcements included the following:

-- Cost reduction measures aimed at growing operating profits and reducing the operating ratio (OR).
-- A review of the nonrail assets, including freight-forwarding services and vessels, which could be either partly or fully divested, also with the aim of lowering the OR.
-- A reduction in CN's capital expenditures to approximately 17% of revenues starting in 2022 from more than 20%.
-- CN will recommence share repurchases under the plan previously approved by the Company's board of directors in January 2021 and expects to complete the remaining $1.1 billion of share repurchases by the end of January 2022.
-- A review of CN’s capital structure and financial leverage over the coming months.
-- A view toward increasing share buybacks in the range of $5 billion in 2022.
-- Confirmation of CN's commitment to a science-based target of 43% carbon emissions intensity reduction by 2030.
Underlying
Canadian National Railway Company

Provider
DBRS Morningstar
DBRS Morningstar

DBRS Morningstar is a global credit ratings business with 700 employees in eight offices globally. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.

Together, we are the world’s fourth largest credit ratings agency and a market leader in Canada, the U.S. and Europe in multiple asset classes. We rate more than 2,600 issuers and 54,000 securities worldwide and are driven to bring more clarity, diversity and responsiveness to the ratings process. Our approach and size provide the agility to respond to customers’ needs, while being large enough to provide the necessary expertise and resources. For more details visit us at dbrs.com.

Analysts
Amaury Baudouin

Charles Halam-Andres

Raja Kalra

Timothy O'Brien

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