S&P lowers EnerCare

S&P said it lowered its long-term issuer credit rating on EnerCare Inc. and subsidiary EnerCare Solutions Inc. (collectively, EnerCare) to BBB- from BBB. The outlook is stable.

S&P also lowered its issue-level rating on EnerCare Solutions' unsecured notes outstanding (approximately C$725 million in aggregate) to BBB- from BBB.

At the same time, S&P removed its ratings on EnerCare from CreditWatch, where they had been placed with negative implications Sept. 26.

“The downgrade primarily reflects EnerCare's higher estimated leverage following the company's debt-financed acquisition by Brookfield Infrastructure Partners LP (BBB+/stable/--) and Brookfield's institutional partners. We now estimate the company will generate adjusted debt-to-EBITDA in the high-3.0x area in 2019, which breaches our previous 3.5x downgrade threshold for the rating,” S&P said in a news release.

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