DBRS Morningstar Assigns Rating of BBB With a Stable Trend to Stantec Inc.’s New Debt Issuance

DBRS Limited (DBRS Morningstar) assigned a rating of BBB with a Stable trend to Stantec Inc.’s (Stantec or the Company; rated BBB with a Stable trend by DBRS Morningstar) CAD 250 million Senior Unsecured Notes, Series 2 due June 27, 2030 (the Notes), which closed on June 27, 2023.

The rating being assigned is based upon the rating of an already-outstanding series of the above-mentioned debt instrument.

DBRS Morningstar expects Stantec to use the net proceeds from the issuance of the Notes toward the repayment of existing debt and for other general corporate purposes.

The Notes are unsecured and rank pari passu with all existing and future senior unsecured indebtedness of the Company.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/396929 (May 17, 2022).

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

DBRS Morningstar applied the following principal methodology:
-- Rating Companies in the Services Industry (January 28, 2022), https://www.dbrsmorningstar.com/research/391428

The following methodologies have also been applied:
-- DBRS Morningstar Criteria: Guarantees and Other Forms of Support (April 4, 2022), https://www.dbrsmorningstar.com/research/394683

The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

A description of how DBRS Morningstar analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/397223.

The rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the rating process for this rating action.

DBRS Morningstar had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

This is a solicited credit rating.

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

Information regarding DBRS Morningstar ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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