DBRS confirms Union Gas

DBRS said it confirmed Union Gas Ltd.'s unsecured debentures/medium-term note debentures rating at A, commercial paper rating at R-1(low) and cumulative redeemable preferred share ratings at Pfd-2.

The trend is stable.

The ratings reflect Union's low business risk operations within a stable regulatory environment, dominant position within a strong franchise area, sound financial profile and credit metrics, as well as earnings growth from its storage facilities and transmission system, DBRS said.

The ratings also consider the company's exposure to ongoing volume risk and a continued modest decline in customer consumption, the agency said, as well as cash flow deficits due principally to working capital changes.

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