Morningstar DBRS Finalizes Provisional Rating of North West Redwater Partnership Commercial Paper Program at R-1(low)

DBRS Limited (Morningstar DBRS) finalized the provisional rating of R-1 (low) to North West Redwater’s (NWRP or the Issuer) commercial paper program. NWRP has set a program limit of $2 billion. The commercial paper program is backed by a $2.175 billion committed revolving credit facility in place, with ultimate support from the Debt Service Obligation (DSO) of NRWP’s two toll payers, Canadian Natural Resources Limited (CNRL) and the Alberta Petroleum Marketing Commission (APMC).

CREDIT RATING RATIONALE
The credit rating is based on the commercial paper program meeting the requirements specified in “DBRS Morningstar Global Criteria: Commercial Paper Liquidity Support for Nonbank Issuers,” ultimately backed by the toll payers’ DSO support, and corresponds to NWRP’s long-term Issuer Rating of “A.”

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
General Considerations
Credit rating actions on Canadian Natural Resources Limited (CNRL) and the Province of Alberta are likely to have an impact on this credit rating. ESG factors that have a significant or relevant effect on the credit analysis of CNRL or the Province of Alberta are discussed separately at https://dbrs.morningstar.com/issuers/3014 and https://dbrs.morningstar.com/issuers/66.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://dbrs.morningstar.com/research/427030/morningstar-dbrs-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings (January 23, 2024).

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

Morningstar DBRS applied the following principal methodologies:
-- DBRS Morningstar Global Criteria: Guarantees and Other Forms of Support (March 28, 2023); https://dbrs.morningstar.com/research/411694/dbrs-morningstar-global-criteria-guarantees-and-other-forms-of-support

-- DBRS Morningstar Global Criteria: Commercial Paper Liquidity Support for Nonbank Issuers (February 24, 2023); https://dbrs.morningstar.com/research/410196/dbrs-morningstar-global-criteria-commercial-paper-liquidity-support-for-nonbank-issuers

The following methodology has also been applied:
-- Global Methodology for Rating Project Finance (September 12, 2023); https://dbrs.morningstar.com/research/420425/global-methodology-for-rating-project-finance

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

A description of how Morningstar DBRS analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://dbrs.morningstar.com/research/397223.

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].

A provisional credit rating is not a final credit rating with respect to the above-mentioned commercial paper and may change or be different than the final credit rating assigned or may be discontinued. The assignment of a final credit rating on the above-mentioned commercial paper is subject to receipt by Morningstar DBRS of all data and/or information and final documentation that Morningstar DBRS deems necessary to finalize the credit rating.

The credit rating was initiated at the request of the rated entity.
The rated entity or its related entities did participate in the credit rating process for this credit rating action.
Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.
This is a solicited credit rating.

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

Information regarding Morningstar DBRS credit ratings, including definitions, policies, and methodologies, is available on dbrs.morningstar.com or contact us at [email protected].

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