Trans Québec & Maritimes Pipeline Inc.: Rating Report

On November 29, 2019, DBRS Limited (DBRS Morningstar) confirmed Trans Québec & Maritimes Pipeline Inc.’s (TQM or the Company) Issuer Rating at A (low) with a Stable trend. TQM is an integral part of the Canadian Mainline system owned by TransCanada PipeLines Limited (TCPL; rated A (low) with a Stable trend by DBRS Morningstar). TC Energy Corporation (rated Pfd-2 (low) with a Stable trend by DBRS Morningstar) owns 100% of TCPL, which in turn owns 50% of TQM. TQM is regulated by the Canada Energy Regulator (CER; formerly the National Energy Board). The Company generates earnings from a long-term, cost-of-service-based take-or-pay contract with TCPL with a current term that extends to 20301. The contract eliminates all commodity and volume risk. As a result, TQM’s rating is aligned with TCPL’s rating.