Fitch rates Enbridge

Fitch Ratings said it assigned a BBB+ long-term issuer default rating, a BBB+ senior debt rating, a BBB- preferred share rating and a BBB- junior subordinated note rating to Enbridge, Inc. It also assigned Enbridge Energy Partners, LP a BBB long-term issuer default rating and a BBB senior debt rating. The outlook is stable.

The agency said the companies’ ratings reflect their beneficial size and scale and the cash flow stability provided by low-risk businesses.

Enbridge’s BBB+ rating also reflects the diversity of cash flows, low customer credit risk, an array of credit-supportive financial policies concerning both liquidity and hedging, the company's proven ability to tap multiple deep pools of debt and equity capital and its decade-plus demonstrated competence in the construction phase of its development undertakings, Fitch said.

Concerns for the companies include high leverage, organizational complexity/dynamism and high capital spending levels, Fitch said. Additional rating concerns for Enbridge are structural subordination, high payout ratio guidance and merger integration risk, the agency added.

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