Veridian Corporation: Rating Report

On May 1, 2018, DBRS Limited (DBRS) confirmed the Issuer
Rating of Veridian Corporation (Veridian or the Company) at “A”
with a Stable trend. The rating confirmation is based on the stability
of Veridian’s regulated electricity distribution business in
Ontario, as well as its strong key credit metrics. DBRS expects
the Company to continue to fund future growth investments
in a prudent manner in order to avoid material structural subordination
risk. DBRS notes that the senior unsecured debt at
Veridian ranks junior to the senior unsecured debt at Veridian
Connections Inc. (VCI), the Company’s primary operating subsidiary.
A negative rating action is likely to occur should the senior
unsecured debt at Veridian account for more than 10% of
total debt, excluding shareholder debt, at the Company (approximately
5.9% as at December 31, 2017).