1105 GMT - The effects of a tariff-weakened Canadian dollar on Canadian oil-and-gas pipeline operators should be transitory, Morningstar DBRS reckons. It expects the longer-term impact on credit ratings to be minimal once these projects are placed into service and start generating U.S. dollar-denominated cash flows. Looking at TC Energy and Enbridge, it estimates that a weaker loonie could temporarily dent the cost of their secured capital programs by about C$900 million because of the exposure to U.S. projects with U.S. dollar-denominated capital costs. But both should be able to offset this through U.S dollar-denominated Ebitda, Morningstar says. Pipeline operators with significant U.S. capital programs in the U.S. could feel a modest inflationary impact on budgets caused by a weaker Canadian dollar, but contractual protections and U.S. dollar-denominated cash flows should insulate their credit profiles in the medium term, it says. (robb.stewart@wsj.com; @RobbMStewart)

(END) Dow Jones Newswires

April 14, 2025 07:05 ET (11:05 GMT)

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