Moody’s revises TransCanada to negative

Moody's Investors Service said it affirmed TransCanada PipeLines Ltd.’s (TCPL) A3 senior unsecured and issuer ratings, Baa1 junior subordinate rating and Prime-2 short term commercial paper rating.

At the same time, the agency affirmed TransCanada Corp.’s Baa1 issuer rating, Nova Gas Transmission Ltd.'s A3 senior unsecured rating, TransCanada Trust's Baa2 subordinated unsecured notes rating and TransCanada American Investments Ltd.’s Prime-2 short-term commercial paper rating.

The outlooks for TransCanada PipeLines, TransCanada, Nova Gas and TransCanada Trust were changed to negative from stable.

There is no outlook for TransCanada America.

"TCPL's financial profile is weak for its rating, and we expect financial ratios to remain weaker for longer," Moody’s vice president, senior credit officer Gavin MacFarlane said in a news release.

"We see EBITDA rising as the company completes its project backlog, but without any changes to corporate financing plans, leverage may not fall below the 5x level until 2019, later than we had previously been incorporating into our analysis since TCPL acquired the Columbia Pipeline Group."

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