Enbridge Income Fund: Rating Report

On September 27, 2018, DBRS Limited (DBRS) confirmed the Issuer Rating and the Senior Unsecured Long-Term Notes rating of Enbridge Income Fund (EIF or the Fund) at BBB (high), with Stable trends. On a Fund Group basis whereby DBRS adds EIF’s debt and associated interest expenses to Enbridge Income Fund Partner LP’s (EIPLP) amounts to calculate key credit metrics, the Fund Group’s credit metrics improved in the first half of 2018 (H1 2018) from solid levels in 2017. The improvement reflected stronger performance from the liquids pipelines segment, mostly from the Canadian Mainline (Mainline) owned by EIPLP’s subsidiary, Enbridge Pipelines Inc. (EPI; rated “A”, Stable trend). In August 2018, Enbridge Income Fund Holdings Inc. (EIFH; the Fund’s holding company) closed the sale of a 49% interest in various wind and solar facilities for approximately $1.05 billion (the Green Power Sale). DBRS believes that the Green Power Sale does not have a material impact on the Fund’s earnings and cash flow profiles since the Green Power segment (on a 100% basis) accounted for only 8.5% of EIPLP’s segment EBITDA for the last 12 months ending June 30, 2018. DBRS estimates that over 85% of EIPLP’s segment EBITDA will continue to be contributed by the low-risk liquids pipeline segment.