DBRS has announced:
DBRS has confirmed the ratings on the Medium-Term Notes & Unsecured Debentures (long-term debt) and Cumulative Redeemable Preferred Shares (preferred shares) of Enbridge Inc. (Enbridge or the Company) at “A” and Pfd-2 (low), respectively, with the trends changed to Negative from Stable.
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The rating confirmations and trend changes to Negative on the long-term debt and preferred share ratings reflect the following:
(1) The Company’s ongoing capital expenditure program (including $6.5 billion of committed and $2.5 billion of “in development” liquids pipelines projects over the 2007 to 2011 period, and the potential for additional projects that would raise the total to $12.2 billion) continues to increase, reflecting principally higher costs than originally anticipated and the addition of new projects. This will require substantial external funding, including debt issuance, potential asset monetization and equity financing over the medium term.
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The preferreds continue to be rated P-2 by S&P.
The bonds are at A (negative trend) by DBRS, A- by S&P. Moody’s doesn’t rate the prefs, but downgraded the bonds from A3 to Baa1 in March 2007. Fitch rates neither.
Update: ENB.PR.A has been previously noted as an issue occasionally trading at a negative Yield-to-Worst. At its current quote of 24.96-08, this isn’t a major concern – but it is callable at par commencing December 2, so there’s not much upside to the issue.
This entry was posted on Tuesday, November 6th, 2007 at 9:40 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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ENB.PR.A : DBRS Puts Ratings on "Negative Trend"
DBRS has announced:
The preferreds continue to be rated P-2 by S&P.
The bonds are at A (negative trend) by DBRS, A- by S&P. Moody’s doesn’t rate the prefs, but downgraded the bonds from A3 to Baa1 in March 2007. Fitch rates neither.
Update: ENB.PR.A has been previously noted as an issue occasionally trading at a negative Yield-to-Worst. At its current quote of 24.96-08, this isn’t a major concern – but it is callable at par commencing December 2, so there’s not much upside to the issue.
This entry was posted on Tuesday, November 6th, 2007 at 9:40 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.