DBRS Assigns Rating of Pfd-2 (high) to CU Inc.’s Preferred Share Issue

DBRS has today assigned a rating of Pfd-2 (high) with a Stable trend to CU Inc.’s (CUI or the Company) $75 million Cumulative Redeemable Preferred Shares Series 4 (Preferreds). The Preferreds will yield 3.80% per annum for the initial five-year period ending June 1, 2016. The dividend rate will reset on June 1, 2016, and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 1.36%. The Preferreds are redeemable by CUI on June 1, 2016, and on June 1 every five years thereafter. The Preferreds are being issued under the Preliminary Short Form Prospectus dated November 16, 2010, and are expected to settle on or about December 2, 2010.

DBRS currently rates CUI’s Unsecured Debentures & Medium-Term Notes at A (high) with a Stable trend.

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

The applicable methodology is Rating North American Energy Utilities (Electric, Natural Gas, and Pipelines), which can be found on our website under Methodologies.