DBRS Morningstar Removes All Ratings of Pembina Pipeline Corporation From Under Review, Confirms All Ratings With Stable Trends

DBRS Limited (DBRS Morningstar) removed all the ratings of Pembina Pipeline Corporation (Pembina or the Company) from Under Review with Developing Implications, where they were placed on June 1, 2021.

DBRS Morningstar’s rating actions are as follows:

-- Issuer Rating, BBB (high), removed from Under Review with Developing Implications and confirmed the rating with a Stable trend.
-- Senior Unsecured Notes, BBB (high), removed from Under Review with Developing Implications and confirmed the rating with a Stable trend.
-- Preferred Shares, Pfd-3 (high), removed from Under Review with Developing Implications and confirmed the rating with a Stable trend.
-- Fixed-to-Fixed Rate Subordinated Notes, BBB (low), removed from Under Review with Developing Implications and confirmed the rating with a Stable trend.

DBRS Morningstar’s rating actions follow the Company’s announcement that the agreement providing for the acquisition of Inter Pipeline Ltd. (IPL; the Agreement) was terminated. IPL has agreed to pay Pembina the $350 million termination fee provided for in the Agreement.

DBRS Morningstar does not expect the termination of the Agreement to have a material impact on Pembina’s credit profile.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

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

The principal methodologies are Rating Companies in the Pipeline and Diversified Energy Industry (November 19, 2020; https://www.dbrsmorningstar.com/research/370267) and DBRS Morningstar Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers (November 2, 2020; https://www.dbrsmorningstar.com/research/369165), which can be found on dbrsmorningstar.com under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (February 3, 2021; https://www.dbrsmorningstar.com/research/373262).

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at [email protected].

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.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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