DBRS Limited (DBRS Morningstar) assigned a rating of “A” with a Stable trend to Énergir Inc.’s (Énergir or the Company) $300 million 2.10% Series V First Mortgage Bonds (the Mortgage Bonds) due April 16, 2027. The rating assigned is based upon the rating on already-outstanding series of the above-mentioned debt instruments.
The Mortgage Bonds are direct obligations of Énergir and rank pari passu and are secured equally and rateably with all other series of First Mortgage Bonds issued and outstanding. The Mortgage Bonds are secured by a hypothec of first rank on the universality of the movable and immovable property, present and future, of the Company and are guaranteed by Énergir, L.P. (the Partnership). Proceeds from the Mortgage Bonds will be loaned to the Partnership on substantially similar terms, and the Partnership will use the funds to repay existing indebtedness and for general corporate purposes.
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.
All figures are in Canadian dollars unless otherwise noted.
The principal methodologies are Rating Companies in the Regulated Electric, Natural Gas and Water Utilities Industry (September 2019), DBRS Morningstar Criteria: Guarantees and Other Forms of Support (January 2020), and DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 2019), which can be found on dbrsmorningstar.com under Methodologies & Criteria.
For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.
Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.
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