DBRS Morningstar Notes TransCanada PipeLines Limited’s Commercial Paper Limit Reduction, Rating Unchanged at R-2 (high)

DBRS Limited (DBRS Morningstar) notes that TransCanada PipeLines Limited (TCPL or the Company) has reduced the limit on its Canadian-domiciled Commercial Paper (CP) program to $0.5 billion from $3.0 billion. TCPL’s Canadian-domiciled CP program (rated R-2 (high) with a Stable trend by DBRS Morningstar) is currently backstopped by the following credit facilities: (1) $3.0 billion syndicated credit facility maturing in December 2027; (2) USD 2.5 billion syndicated credit facility maturing in December 2025; and (3) USD 3.0 billion syndicated credit facility maturing in December 2023.

Based on its review, DBRS Morningstar is satisfied that the Company’s revised Canadian-domiciled CP program limit and its current credit facilities meet DBRS Morningstar’s requirements with respect to the “DBRS Morningstar Global Criteria: Commercial Paper Liquidity Support for Nonbank Issuers.” DBRS Morningstar is of the view that the reduction in TCPL’s Canadian-domiciled CP program limit has no impact on the credit profile of TCPL.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) 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 (July 4, 2023; https://www.dbrsmorningstar.com/research/416784).

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

DBRS Morningstar applied the following principal methodologies:
-- Global Methodology for Rating Companies in the Pipeline and Midstream Energy Industry (November 3, 2022; https://www.dbrsmorningstar.com/research/404917)
-- DBRS Morningstar Global Criteria: Commercial Paper Liquidity Support for Nonbank Issuers (February 24, 2023; https://www.dbrsmorningstar.com/research/410196)
-- DBRS Morningstar Global Criteria: Guarantees and Other Forms of Support (March 28, 2023; https://www.dbrsmorningstar.com/research/411694)
-- DBRS Morningstar Global Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers (October 19, 2023; https://www.dbrsmorningstar.com/research/422134)

The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

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 credit ratings are under regular surveillance.

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

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