PrefBlog

Standard & Poor’s has announced:

• •We believe that TransCanada Corp. (TCC) will not achieve adjusted funds from operations (AFFO)-to-debt of 18%, a requirement we set for the ‘A-‘ rating.
• •In addition, the company has an increasing U.S. asset portfolio that will account for 35%-40% of EBITDA by 2020, and that TCC’s credit measures are
  weaker than many lower-rated diversified U.S. peers.

• •As a result, we are lowering our ratings on TCC and its subsidiary TransCanada PipeLines Ltd., including our long-term corporate credit rating on each to ‘BBB+’ from ‘A-‘.
• •The stable outlook reflects our view that, over the next two years, AFFO-to-debt will be in the 15%-17% range, and debt-to-EBITDA will be approximately 4.5x.

S&P Global Ratings today lowered its ratings on TransCanada Corp. (TCC) and its subsidiary TransCanada PipeLines
Ltd., including its long-term corporate credit rating on both to ‘BBB+’ from ‘A-‘. The outlook is stable.

At the same time, we lowered our global and Canadian national scale preferred share ratings to ‘BBB-‘ and ‘P-2(Low)’ from ‘BBB’ and ‘P-2’ respectively. We also lowered our ratings on the senior unsecured debt to ‘BBB+’ from ‘A-‘ and
the junior subordinated debt to ‘BBB-‘ from ‘BBB’.

Finally, we affirmed our short term and commercial paper rating at ‘A-2’.

Affected issues are TRP.PR.A, TRP.PR.B, TRP.PR.C, TRP.PR.D, TRP.PR.E, TRP.PR.F, TRP.PR.G, TRP.PR.H, TRP.PR.I, TRP.PR.J and TRP.PR.K.

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