SNC-Lavalin Group Inc.: Rating Report

DBRS Limited (DBRS) confirmed the Issuer Rating and Senior Debentures rating of SNC-Lavalin Group Inc. (SNC or the Company) at BBB with Stable trends. In confirming the ratings, DBRS acknowledges that SNC’s refocus on operational excellence, efforts to further improve cost efficiency and delivery capabilities as well as the Company’s emphasis on more effective risk management, have moderately strengthened its business risk profile. Following the Kentz Corp. Ltd. acquisition in F2014, which added considerable scale and capabilities in the oil and gas (O&G) sector, SNC successfully completed the acquisition of United Kingdom-based WS Atkins plc (Atkins) on July 3, 2017. This acquisition adds significant geographic and sectoral diversification and shifts the Company’s overall business towards the Services segment which DBRS views as beneficial to the overall risk profile. A stronger business risk profile after the acquisition of Atkins is the primary factor supporting the current rating.