DBRS confirms Spectra Energy

DBRS said it has confirmed the unsecured debentures and commercial paper ratings of Spectra Energy Capital LLC at BBB (high) and R-2 (high), respectively, both with stable trends.

The current ratings incorporate DBRS' expectation that Spectra Capital's significant capex program will result in negative free cash flows and pressure its credit ratios over the period as much of the financing will come from increased long-term debt.

According to the agency, the company intends to manage its balance sheet within the 55% to 60% total debt-to-capital ratio range (57% as at June 30, 2009), which is consistent with the current ratings, given the company's significant component of low risk, mostly regulated operations.

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