DBRS Rates Enbridge Inc.’s Preferred Share Issue at Pfd-2 (low), Stable Trend

DBRS has today assigned a rating of Pfd-2 (low) with a Stable trend to Enbridge Inc.’s (Enbridge or the Company) US$400 million cumulative redeemable preferred shares, Series L (the Series L Preferred Shares), which have a dividend rate of 4.0% per annum, payable quarterly for the initial fixed-term period ending September 1, 2017. The dividend rate will reset on September 1, 2017, and every five years thereafter at a rate equal to the sum of the then five-year United States Government bond yield plus 3.15%. The Series L Preferred Shares are redeemable by Enbridge on September 1, 2017, and on September 1 of every fifth year thereafter.

Holders of the Series L Preferred Shares will have the right, at their option, to convert their shares into cumulative redeemable preferred shares, Series M (Series M Preferred Shares), subject to certain conditions, on September 1, 2017, and on September 1 every five years thereafter. Holders of the Series M Preferred Shares will be entitled to receive cumulative quarterly dividends at a rate equal to the sum of the then three-month United States Treasury Bill rate plus 3.15%.

The Series L Preferred Shares are to be issued under a prospectus supplement dated May 10, 2012, to the short form base shelf prospectus dated May 10, 2012, and are expected to close on May 23, 2012. The Series L Preferred Shares will rank equally with all outstanding cumulative redeemable preferred shares and with any future preferred shares issued by the Company. Net proceeds from the offering will be used to partially fund Enbridge’s capital projects, to reduce existing indebtedness and for general corporate purposes.

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The applicable methodology is Rating North American Pipeline and Diversified Energy Companies, which can be found on our website under Methodologies.