trending Market Intelligence /marketintelligence/en/news-insights/trending/1LO5nzZ_XO8miBCBE_Gndg2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Moody's reviews Enbridge credit ratings for possible 'multi-notch upgrade'

Essential Energy Insights - September, 2020

Rate case activity slips, COVID-19 proceedings remain at the forefront in August

Bull market leaves US utilities behind in August

Utilities, midstream reckon with energy transformation on the horizon

Moody's reviews Enbridge credit ratings for possible 'multi-notch upgrade'

Enbridge Inc. may see its credit ratings and those of several subsidiaries upgraded by Moody's as the Canadian pipeline operator moves to simplify its corporate structure.

Moody's on Dec. 11 placed Enbridge on review for an upgrade of its Baa3 senior unsecured rating, along with Enbridge Energy Partners LP's Baa3 rating and Enbridge Energy LP's Baa2 rating. All of the ratings are considered investment-grade.

"Enbridge has taken significant steps to simplify the corporate structure and reduce structural subordination, including the announcement of cross-guarantees among Enbridge, Spectra and Enbridge Energy Partners," Gavin MacFarlane, vice president and senior ratings officer in Moody's Toronto office, said in a statement. "Combined with a sustained reduction in leverage, these efforts position the company for a multi-notch upgrade."

The changes would affect approximately C$31 billion in debt, Moody's said. Subsidiaries that issue their own debt for ratemaking purposes, such as the company's Ontario gas distribution utilities and government-regulated pipelines, will continue to carry their own ratings.

Following Enbridge's recent move to roll up its U.S. partnerships in the wake of changes in tax treatment there, "the percentage of holding company debt to proportionately consolidated debt should reach 55%-60% up from around one-third," Moody's said. The transactions would increase unlevered EBITDA to about 30%. "Lower operating company debt and higher unlevered EBITDA are important considerations that reduce structural subordination considerations at the company," the report said.

Shareholders will vote on Enbridge's proposed merger with Enbridge Energy Partners and Enbridge Energy Management LLC in Calgary on Dec. 17. The parent company has offered 0.335 common share for each unit of the subsidiaries.