S&P could raise Spectra Energy

S&P said it placed its BBB corporate credit rating on Spectra Energy Corp. and financing arm Spectra Energy Capital LLC, as well as BBB- issue rating on Spectra Energy Capital, on CreditWatch with positive implications.

At the same time, the agency placed the BBB corporate credit rating and BBB senior unsecured issue ratings on operating subsidiary Spectra Energy Partners LP (SEP) on CreditWatch positive and affirmed the A-2 short-term ratings. It also placed the BBB corporate credit and senior unsecured issue ratings on Texas Eastern Transmission LP on CreditWatch positive.

In addition, S&P took various ratings actions on Spectra Energy Corp.'s operating subsidiaries Westcoast Energy Inc. and Union Gas Ltd.

"The CreditWatch listing on Spectra and its operating subsidiaries reflect our expectation that we will raise the ratings in line with those of Enbridge Inc.," S&P analyst Michael Grande said in a news release.

"Spectra will become a wholly owned subsidiary of Enbridge, and we expect Spectra's 2017 consolidated EBITDA of about US$3.2 billion will account for about 40% of the combined company's pro forma cash flow."

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