DBRS Morningstar Provides Update on Cameco Corporation’s Strategic Partnership to Acquire Westinghouse Electric Company

DBRS Limited (DBRS Morningstar) notes Cameco Corporation’s (Cameco or the Company; rated BBB and Under Review with Developing Implications) ongoing plans to form a strategic partnership and consortium with Brookfield Renewable Partners L.P. (rated BBB (high) with a Stable trend by DBRS Morningstar) and its institutional partners to acquire Westinghouse Electric Company LLC (Westinghouse) from Brookfield Business Partners L.P. This plan was announced on October 11, 2022.

The Company continues to seek regulatory, competition, and other approvals and expects to complete the transaction in the second half of 2023. The final financing package, where Cameco’s share is approximately $2.2 billion for a 49% stake of Westinghouse, will be determined based on its cash balances, future expected cash flow generation, and market conditions at the time of closing. The Company continues to expect a permanent financing mix of capital sources that will preserve its balance sheet while maintaining liquidity.

DBRS Morningstar anticipates to resolve the Under Review status when the remaining outstanding approvals have been received in order to close the transaction and the final financing mix has been determined.

Notes:
All figures are in U.S. dollars unless otherwise noted.

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