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

DBRS Limited (DBRS) has today assigned an “A” rating with a Stable trend to the CAD 200 million of 3.19% Medium-Term Note Debentures (Unsecured), Series 13 due September 17, 2025, and CAD 250 million reopening of 4.20% Medium-Term Note Debentures (Unsecured), Series 12 due June 2, 2044 (collectively, the Debentures) issued by Union Gas Limited (Union Gas). The settlement date for the Debentures is September 17, 2015.

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 Union Gas. The Debentures will not be secured by any mortgage, pledge or other charge. It is DBRS’s understanding that the net proceeds from the Debentures will be used for the repayment of short-term debt, capital expenditures and general corporate purposes.

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

The applicable methodology is Rating Companies in the Regulated Electric, Natural Gas and Water Utilities Industry (October 2014), which can be found on our website under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.