DBRS Morningstar Comments on Enwave Energy Corporation Sale to OTPP and IFM Investors

DBRS Limited (DBRS Morningstar) notes that on June 7, 2021, Ontario Teachers’ Pension Plan Board (OTPP, rated AAA with a Stable trend by DBRS Morningstar) and IFM Investors (IFM) jointly completed the acquisition of a 100% interest in Enwave Energy Corporation (Enwave or the Company, rated A (low) with a Stable trend by DBRS Morningstar) from Brookfield Infrastructure for $2.8 billion. OTPP and IFM Investors each own 50% of the Company through a special-purpose vehicle holding company (SPV). DBRS Morningstar notes that both OTPP and IFM have significant assets under management and own various infrastructure assets.

Based on discussions with the management of Enwave, OTPP, and IFM, DBRS Morningstar does not view the transaction, as completed and funded, to materially change the Company’s credit quality. DBRS Morningstar notes that if in the future the SPV materially changes its business risk or financial profile, DBRS Morningstar could reassess its opinion on Enwave. DBRS Morningstar expects that Enwave will continue to maintain its current expansion and capital expenditure funding strategy and maintain its debt-to-EBITDA ratio and the cash flow-to-debt ratio within the expected range, as indicated in DBRS Morningstar’s Enwave rating confirmation press release dated December 24, 2020.

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

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

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