DBRS Comments on Completion of Merger between Spectra Energy Corp and Enbridge Inc.

DBRS Limited (DBRS) notes that Enbridge Inc. and Spectra Energy Corp have announced today that the previously announced stock-for-stock merger of the two companies (the Transaction) has been completed. Effective as of the opening of trading today, Spectra Energy Corp ceased to be a publicly held corporation and has become an indirect wholly owned subsidiary of Enbridge Inc.

Following the announcement of the Transaction in September 2016, DBRS had confirmed the ratings of Spectra Energy Capital, LLC (Spectra or the Company; rated BBB, Stable; 100% owned by Spectra Energy Corp) and its DBRS-rated subsidiaries (Westcoast Energy Inc., rated A (low), Stable; Union Gas Limited, rated “A,” Stable; Maritime & Northeast Pipeline Limited Partnership, rated “A,” Stable; Express Pipeline Limited Partnership & Express Pipeline LLC, rated A (low), Stable). (Please refer to DBRS press release, “DBRS Confirms Spectra Energy Capital, LLC and Rated Subsidiaries, Removes UR-Dev. Status,” dated September 8, 2017.) DBRS continues to believe that the merger does not have any impact on the credit quality of Spectra and its DBRS-rated subsidiaries as no changes are currently contemplated to Spectra, its subsidiaries and counterparties, as a result of the Transaction. As a result, the stand-alone credit profiles of Spectra and its DBRS-rated subsidiaries remain unchanged.

Notes:
The applicable methodologies are Rating Companies in the Pipeline and Diversified Energy Industry (December 2016), Rating Companies in the Regulated Electric, Natural Gas and Water Utilities Industry (October 2016), DBRS Criteria: Commercial Paper Liquidity Support for Non-Bank Issuers (February 2017), DBRS Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers (December 2016) and DBRS Criteria: Rating Holding Companies and Their Subsidiaries (December 2016), which can be found on our website under methodologies.

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