DBRS Comments on Canadian Utilities and CU Inc. Announcement

DBRS notes that Canadian Utilities Limited (CUL) and its subsidiary CU Inc. (CUI) have today announced the filing of an Alberta Utilities Commission application to approve the transfer of natural gas storage assets located at Carbon, Alberta, from a subsidiary of CUI to a subsidiary of CUL. The transfer is expected to occur in the first quarter of 2011, subject to approvals and documentation.

Given the negligible size of the non-utility gas storage assets, the transfer would result in no impact to the ratings of either CUI (A (high), R-1 (low) and Pfd-2 (high)) or CUL (“A”, R-1 (low) and Pfd-2 (high)).

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