DBRS Morningstar Assigns Rating of BBB (high) With a Stable Trend to TriSummit Utilities Inc.’s $200 Million Unsecured Medium Term Notes Offering

DBRS Limited (DBRS Morningstar) assigned a rating of BBB (high) with a Stable trend to the TriSummit Utilities Inc. (TSU) $200.0 million 5.02% Medium Term Notes Series 5 offering due January 11, 2030.

The assigned rating is based upon the rating on an already-outstanding series of the above-mentioned debt instrument.

The net proceeds will be used as follows: (1) approximately $135 million will be used to partially finance the acquisition by a TSU subsidiary of ENSTAR Natural Gas Company, the Alaska Pipeline Company, the Norstar Pipeline Company, Inc., and a 65% indirect interest in Cook Inlet Natural Gas Storage Alaska, LLC from SEMCO Energy, Inc., a subsidiary of AltaGas Ltd., which remains subject to certain customary closing conditions; and (2) the remainder will be used to repay amounts outstanding under TSU's Canadian syndicated revolving credit facility and associated operating credit facility, which amounts were incurred in the normal course of business to fund TSU’s working capital requirements.

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

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/396929 (May 17, 2022).

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

The principal methodology is the Global Methodology for Rating Companies in the Regulated Electric, Natural Gas, and Water Utilities Industry (September 13, 2022; https://www.dbrsmorningstar.com/research/402616), which can be found on www.dbrsmorningstar.com under Methodologies & Criteria.

A description of how DBRS Morningstar analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/397223.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

Information regarding DBRS Morningstar ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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