DBRS reviews Veresen

DBRS said it placed the issuer rating, senior unsecured notes rating and preferred share rating of Veresen Inc. under review with negative implications.

The actions follow the company’s announcement that it will pursue the sale of its power generation business and will suspend its Premium Dividend and Dividend Reinvestment Plan (DRIP) from August 2016.

Proceeds from the divestiture of the power business will be invested to develop Veresen’s significant inventory of about C$1.4 billion of contracted capital projects in the core natural gas and natural gas liquids infrastructure business.

The company will also maintain its current dividend payout.

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