DBRS Rates EnCana Corp.’s New Issue at A (low), Under Review - Developing

DBRS has today assigned a rating of A (low), with an Under Review with Developing Implications (URD) status, to EnCana Corporation’s (EnCana or the Company) US$500 million of 6.50% senior unsecured notes (the Notes), maturing May 15, 2019. The Notes are being issued under the Company’s Prospectus Supplement dated April 29, 2009, and are expected to settle on May 4, 2009.

The URD status relates to EnCana’s proposed corporate reorganization (Spin-off) announced on May 11, 2008. The associated execution risk and uncertainties regarding the final capital structures and other challenges could have rating implications for the two new entities to be created, should the Spin-off proceed. Based on EnCana’s current performance, DBRS would likely restore EnCana’s long-term ratings to Stable trends, should the proposed Spin-off be called off.

The Notes will rank equally with EnCana’s existing and future senior unsecured debt, and the net proceeds from the offering will be used to repay a portion of EnCana’s bank and commercial paper indebtedness.

Notes:
The applicable methodology is Rating Oil & Gas Companies, which can be found on the DBRS website under Methodologies.

This is a Corporate rating.