Morningstar DBRS Notes TransCanada PipeLines Limited's Commercial Paper Limit Increase, Rating Unchanged at R-2 (high)

DBRS Limited (Morningstar DBRS) notes that TransCanada PipeLines Limited (TCPL or the Company) has increased the limit on its Canadian-domiciled Commercial Paper (CP) program to $1.25 billion from $0.5 billion. TCPL's Canadian-domiciled CP program (rated R-2 (high) with a Stable trend by Morningstar DBRS) is currently backstopped by the following credit facilities: (1) a $3.0 billion syndicated credit facility maturing in December 2029; (2) a USD 2.5 billion syndicated credit facility maturing in December 2027; and (3) a USD 1.0 billion syndicated credit facility maturing in December 2025.

Based on its review, Morningstar DBRS is satisfied that the Company's revised Canadian-domiciled CP program limit and its current credit facilities meet Morningstar DBRS' requirements as outlined in the Commercial Paper Liquidity Support for Nonbank Issuers section of the "Morningstar DBRS Global Corporate Criteria."

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

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 Factors in Credit Ratings (August 13, 2024), https://dbrs.morningstar.com/research/437781.

BUSINESS RISK ASSESSMENT (BRA) AND FINANCIAL RISK ASSESSMENT (FRA)
(A) Weighting of BRA Factors
In the analysis of TCPL, the BRA factors were considered in the order of importance contemplated in the methodology.

(B) Weighting of FRA Factors
In the analysis of TCPL, the FRA factors were considered in the order of importance contemplated in the methodology.

(C) Weighting of the BRA and the FRA
In the analysis of TCPL, the BRA carries greater weight than the FRA.

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

Morningstar DBRS applied the following principal methodology:
-- Global Methodology for Rating Companies in the Oil & Gas, Oilfield Services, Pipeline, and Midstream Energy Industries (August 12, 2024), https://dbrs.morningstar.com/research/437739

Morningstar DBRS credit ratings may use one or more sections of the Morningstar DBRS Global Corporate Criteria (April 15, 2024; https://dbrs.morningstar.com/research/431186), which covers, for example, topics such as holding companies and parent/subsidiary relationships, guarantees, recovery, and common adjustments to financial ratios.

The following methodologies have also been applied:
-- Morningstar DBRS Global Corporate Criteria (April 15, 2024), https://dbrs.morningstar.com/research/431186
-- Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024), https://dbrs.morningstar.com/research/437781

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/431153.

Information regarding Morningstar DBRS credit ratings, including definitions, policies, and methodologies, is available on https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

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