DBRS Rates Gaz Métro inc.’s CAD 100 Million First Mortgage Bonds at “A,” Stable

DBRS Limited (DBRS) has today assigned a rating of “A” with a Stable trend to Gaz Métro inc.’s (GMi) four-year CAD 100 million 1.52% Series S First Mortgage Bonds (the Mortgage Bonds) due May 25, 2020. The settlement date for the Mortgage Bonds is May 24, 2016.

The Mortgage Bonds are direct obligations of GMi, and rank pari passu and are secured equally and rateably with all other series of First Mortgage Bonds issued and outstanding. The Mortgage Bonds are secured by a hypothec of first rank on the universality of the movable and immovable property, present and future, of GMi, and are guaranteed by Gaz Métro Limited Partnership (GMLP), together with collateral security backed by the assets of GMLP.

DBRS understands that the proceeds of the offering will be loaned to GMLP on similar terms, with GMLP using the funds to repay existing indebtedness and for 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 2015), which can be found on the DBRS website under Methodologies.

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