DBRS Assigns Rating of A (low), Stable to TransCanada PipeLines Limited’s $1.0 Billion Medium-Term Note Debentures

DBRS Limited (DBRS) assigned a rating of A (low) with a Stable trend to TransCanada PipeLines Limited’s (TCPL or the Company) $1.0 billion Medium-Term Note Debentures offering (the Notes), comprising $700 million 3.00% Notes due September 18, 2029, and $300 million 4.18% Notes due July 3, 2048. The net proceeds from the offering will be used to repay the Company’s indebtedness and for general corporate purposes. The rating assigned to this newly issued debt instrument is based on the rating of an already-outstanding debt series of the above-mentioned debt instrument.

Calgary-based TCPL’s ratings reflect the relatively stable cash flow generation supported by the Company’s diversified energy infrastructure asset portfolio of natural gas pipelines, liquids pipelines and power generation assets in North America. A majority of the Company’s operating cash flow is underpinned by cost-of-service rate-regulated and long-term contracted assets with no commodity risk.

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

The principal methodologies are Rating Companies in the Pipeline and Diversified Energy Industry, DBRS Criteria: Commercial Paper Liquidity Support for Non-Bank Issuers, DBRS Criteria: Rating Corporate Holding Companies and Their Subsidiaries and DBRS Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers, which can be found on dbrs.com under Methodologies & Criteria.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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

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