DBRS Morningstar Assigns BBB (low) Rating with Negative Trend to SNC-Lavalin Group Inc.’s New Debt Issuance

DBRS Limited (DBRS Morningstar) assigned a rating of BBB (low) with a Negative trend to the CAD 300 million Series 6 Debentures due August 19, 2024 (the Debentures), issued by SNC-Lavalin Group Inc. (SNC). The Debentures rank pari passu with all other unsecured and unsubordinated indebtedness of SNC and the proceeds will be used for repurchasing (at par) a portion of the $300 million Series 1 Debentures (maturing in November 2020), repaying debt outstanding under the Revolving Credit Facility, and general corporate purposes.

The rating assigned to this newly issued debt instrument is based on the rating of an already-outstanding debt series of the above-mentioned debt instrument.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodologies are Rating Companies in the Construction and Property Development Industry (November 28, 2019), DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 25, 2019) and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (January 22, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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