Press Release

DBRS Morningstar Assigns Rating of BBB (low), Stable to AltaGas Ltd.’s $500 Million Medium-Term Notes

Utilities & Independent Power
December 16, 2019

DBRS Limited (DBRS Morningstar) assigned a rating of BBB (low) with a Stable trend to AltaGas Ltd.’s (AltaGas or the Company) $500 million 2.609% Medium-Term Notes issuance due December 16, 2022 (the Notes). 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. AltaGas intends to use the net proceeds from the Notes to pay down existing indebtedness under the Company’s credit facility and for general corporate purposes.

AltaGas’ ratings reflect its diversified portfolio of regulated utilities and midstream business in the United States and Canada. The Company’s Utilities segment generates stable cash flows that are supported by natural gas distribution rates approved under cost-of-service models; however, structural subordination at AltaGas’ U.S. regulated utilities and earnings volatility and weaker counterparties in its Canadian Midstream segment weaken the Company’s credit profile.

All figures are in Canadian dollars unless otherwise noted.

The principal methodologies are Rating Companies in the Regulated Electric, Natural Gas and Water Utilities Industry; Rating Companies in the Pipeline and Diversified Energy Industry; DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships; and DBRS Morningstar Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers, which can be found on under Methodologies & Criteria.

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

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