DBRS rates Enbridge notes BBB

DBRS said it rated Enbridge Inc.’s $500 million of 7.375% fixed-to-fixed rate subordinated notes, series 2022-B due Jan. 15, 2083, and $600 million of 7.625% fixed-to-fixed rate subordinated notes, series 2022-C due Jan. 15, 2083, BBB(low).

The ratings are based on the rating of an already-outstanding series of subordinated notes, the agency said.

The trend is stable.

Fitch rates EQT notes BBB-

Fitch Ratings said it assigned BBB-/RR4 ratings to EQT Corp.'s two- and five-year senior unsecured notes.

The agency affirmed EQT’s BBB- ratings on Sept. 20.

The proceeds are intended to partially finance the acquisition of Tug Hill Operating's upstream assets and XcL Midstream's gathering and processing assets.

The outlook is stable.

Moody's assigns Ba1 to EQT notes

Moody's Investors Service said it assigned a Ba1 rating to EQT Corp.'s planned senior unsecured notes.

“The company's senior unsecured notes, including the proposed new 2025 and 2028 notes are rated Ba1, which is the same as its CFR, because the debt portion of its capital structure is all unsecured, including its $2.5 billion revolving credit facility,” Moody’s said in a press release.

The proceeds will be used to partially fund the company's pending acquisition of upstream assets from THQ Appalachia I, LLC (Tug Hill) and gathering and processing assets from THQ-XcL Holdings I, LLC (XcL Midstream).

The outlook remains positive.

S&P hikes Energy Harbor

S&P said it raised Energy Harbor Corp.’s issuer rating to BB+ from BB and affirmed the BBB- issue and 1 recovery ratings on its secured debt. The 1 rating indicates very high (90%-100%; rounded estimate: 95%) recovery in the event of a default.

“We believe Energy Harbor Corp. (EH) will benefit from a more supportive regulatory environment. The production tax credits (PTCs) included in the recently approved Inflation Reduction Act (IRA) are particularly meaningful for EH in terms of mitigating downside risk, given that the company doesn't benefit from any regulatory support for its nuclear wholesale generation,” the agency said in a press release.

The outlook is stable.

Moody's eyes Kohl's for downgrade

Moody's Investors Service said it placed Kohl's Corp.'s Baa2 senior unsecured rating on review for downgrade. The outlook was revised to ratings under review from stable.

“The review for downgrade reflects that Kohl's revenue and operating performance is expected to lag its peers when compared to 2019 levels. The review will consider its recent downward earnings revision which anticipates sales to decline 5-6% in 2022 despite the continued rollout of Sephora and for operating margins in the 4.2% to 4.5% range reflecting its need to reduce excess inventories which will pressure gross margins.

“Moody's believes that the company's competitive profile remains pressured despite its major initiatives to attract new customers which could temper long-term growth. The action also considers that Kohl's leverage is elevated above the level appropriate for a Baa2 rating,” the agency said in a press release.

Moody’s said the review will consider Kohl’s strategies to stabilize market share, its ability to enhance and improve its competitive position and its ability to widen operating margins.

S&P eyes Southern Water negatively

S&P said it changed its outlook on Southern Water Services (Finance) Ltd.’s debt to negative from stable.

“High inflation and ongoing capex needs have eroded the rating headroom for SWS's debt. Water companies in the U.K. tend to have some part of their financing linked to inflation because the regulation allows revenues to grow in line with inflation. Roughly 60% of SWS's debt is linked to inflation. With retail price index (RPI) inflation averaging 9% in March 2022, accretion on SWS's inflation-linked bonds increased nearly 4x to £182 million in FY2022 from £47 million in FY2021. We expect annual inflation to average 9.9% in FY2023 and 5.7% throughout the rest of the regulatory period ending in March 2025,” S&P said in a press release.

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