DBRS Assigns Rating to Gaz Métro inc.’s New Issue at “A”, Stable Trend

DBRS has today assigned a rating of “A” with a Stable trend to the $200 million aggregate principal amount of 4.04% senior secured notes ($100 million tranche) and 4.19% senior secured notes ($100 million tranche) of Gaz Métro inc. (GMi), maturing in 2043 and 2048, respectively (the Notes). GMi entered into a note purchase agreement with investors on February 5, 2013, by way of private placement. The funding of the Notes is expected to occur prior to April 30, 2013.

The rating of GMi is based on the credit quality of Gaz Métro Limited Partnership (GMLP), which guarantees GMi’s First Mortgage Bonds (FMBs)

The Notes will be guaranteed by GMLP (the Guarantor), together with collateral security backed by the assets of GMi and GMLP. The proceeds from the Notes will be loaned by GMi to GMLP on substantially similar terms as to interest rate and maturity, and will be used by GMLP to refinance the $150 million FMBs maturing on April 15, 2013, and for general corporate purposes. The Notes will rank pari passu, without preference or priority, with all other debt of GMi and GMLP secured pursuant to the Trust Deed and the Guarantor Trust Deed.

Notes:
All figures are in U.S. dollars unless otherwise noted.

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