Does a listing instantly downgrade if a PayPal subscription is cancelled?

Hi,

Our site is set up to downgrade expired Premium listings to a Basic listing.

Here’s my scenario: A user pays for a recurring Premium listing for one year at PayPal. A subscription gets set up at PayPal to facilitate the recurring payment. A few minutes after completing payment, the user cancels that subscription at PayPal.

My question: Will the Premium listing then be downgraded to Basic at the time when the subscription was cancelled, or will it only be downgraded at the end of the one year that the user paid for?

In my case, the user cancelled the subscription at PayPal a few minutes after successfully completing payment for the Premium listing. The listing was downgraded at the time of cancelling the subscription. I want to verify that this is what is supposed to happen.

Thanks,
John