S&P cuts Enmax, ratings on negative watch

S&P said it downgraded Enmax Corp. and its unsecured debt rating to BBB from BBB+.

“The downgrade reflects our revised assessment of the overall reduced likelihood of extraordinary support to Enmax from Calgary. We no longer expect the city would be as likely to provide extraordinary credit support as Enmax expands beyond the Alberta region. This is reflected by the city’s determination not to provide equity to Enmax for the Emera Maine transaction,” said S&P in a press release.

Enmax plans to sell private debentures to finance the Emera acquisition and assume about C$455 million of Emera Maine’s debt.

S&P also placed all Enmax’s ratings on CreditWatch with negative implications.

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