DBRS Rates Union Gas $450 Million Notes Issue at “A,” Stable Trend

DBRS has today assigned an “A” rating, with a Stable trend to the CAD 200 million of 2.76% Medium-Term Note Debentures (Unsecured), Series 11 due June 2, 2021, and CAD 250 million of 4.20% Medium-Term Note Debentures (Unsecured), Series 12 due June 2, 2044 (collectively, the Debentures) issued by Union Gas Limited (Union Gas or the Company). The settlement date for the Debentures is June 2, 2014.

The Debentures will be direct obligations of Union Gas and will rank pari passu, except as to redemption and/or sinking fund provisions, with all other unsecured and unsubordinated indebtedness of the Company. The Debentures will not be secured by any mortgage, pledge or other charge. It is our understanding that the net proceeds from the Debentures will be used for general corporate purposes.

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

The applicable methodologies are Rating Companies in the Regulated Electric, Natural Gas and Water Utilities Industry (January 2014) and DBRS Criteria: Commercial Paper Liquidity Support for Non-Bank Issuers (February 2014), which can be found on our website under Methodologies.

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