Valener Inc.: Rating Report

On December 20, 2017, DBRS Limited (DBRS) confirmed
Valener Inc.’s (Valener or the Company) Cumulative Rate Reset
Preferred Shares rating at Pfd-2 (low) with a Stable trend. The
rating is based on the credit quality of Valener’s 29% ownership
interest in Énergir, L.P. (the Partnership; previously Gaz Métro
Limited Partnership), which guarantees the First Mortgage
Bonds and Senior Secured Notes (each rated “A” with a Stable
trend by DBRS) of Énergir Inc. (Énergir, previously Gaz Métro
inc.). Valener’s preferred share rating is one notch lower than the
standard mapping from Énergir’s Issuer Rating of “A,” reflecting
structural subordination of obligations at Valener relative
to Énergir.