BBB rates assign to Spectra Energy Capital

Global rating agency Fitch has assigned a ‘BBB’ rating to Spectra Energy Capital LLC (SEC) proposed offering of senior unsecured notes due 2023. The Rating Outlook is Stable. The notes will be fully and unconditionally guaranteed by SEC’s parent, Spectra Energy Corp, on a senior unsecured basis. Note proceeds will be used to repay commercial paper used to repay the $495 million aggregate principal amount of SEC’s 6.25% notes that matured on Feb. 15, 2013. Note proceeds also may be used to fund capital expenditures and for other corporate purposes, including acquisitions and the repayment of other commercial paper. Commercial paper outstanding at year end at SEC was approximately $1.2 billion.

Stable, Predictable Cash Flows: SEC’s ratings reflects the diversity and quality of its asset base and the high percentage of cash flows derived from stable pipeline, storage and gas distribution assets. The ratings reflect the earnings and cash flow stability driven by SEC’s high percentage of fee-based and capacity reservation revenue derived from the company’s operations, principally its large-scale interstate pipelines, a sizable gas distribution company in Ontario, Western Canadian gathering and processing business, and its storage assets. Strategically Located, Diverse Asset Base: SEC’s asset base represents one of the largest natural gas infrastructure businesses in North America.