DBRS downgrades Veresen

DBRS said it downgraded Veresen Inc.’s issuer rating and senior unsecured notes rating to BBB from BBB (high), along with its preferred shares rating to Pfd-3 from Pfd-3 (high).

The downgrades follow the closing of Veresen’s acquisition of 50% convertible preferred interest in Ruby pipeline system, DBRS said.

The ratings also were removed from under review with negative implications, the agency said.

The trend also was revised to stable.

The $1.425 billion acquisition, including transaction costs, was financed with C$920 million of Veresen common equity and C$727 million of bank debt, DBRS said.

The ratings reflect the weak natural-gas pricing environment and competitive landscape, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.