SNC-Lavalin Group Inc.: Rating Report

DBRS Limited (DBRS Morningstar) confirmed the Issuer Rating and Senior Debentures rating of SNC-Lavalin Group Inc. (SNC or the Company) at BBB (low) and maintained the Negative trend. On July 24, 2019, DBRS Morningstar downgraded the ratings to BBB (low) from BBB and changed the trend to Negative from Stable, noting the substantially weaker-than-anticipated Q2 2019 results and slower-than-expected recovery in the Company's financial metrics during 2019. This rating confirmation is supported by a relatively better performance during H2 2019, comfortable liquidity position with cash balances of $1.2 billion as at December 31, 2019, and the Company's ongoing efforts to execute the new strategy focusing on engineering service offerings and exiting lump-sum turnkey contracting.