OREANDA-NEWS. S&P Global Ratings today said it placed its ratings, including its 'BBB' long-term corporate credit rating on Westcoast Energy Inc., on CreditWatch with positive implications.

Enbridge has announced a merger agreement with Spectra Energy Corp., which will see Spectra and all its subsidiaries be merged at the closing of this share exchange transaction. Westcoast operates a network of regulated natural gas gathering and processing and transportation pipelines in B. C., as well as a regulated gas distribution utility in Ontario, Union Gas.

"The transaction would introduce group support from Enbridge, currently a higher rated entity than existing parent Spectra Energy," said S&P Global Ratings credit analyst Gerald Hannochko.

The CreditWatch placement reflects our view that if the transaction closes as expected, Westcoast would likely become core to Enbridge Inc., and the rating and outlook would be equalized with those on Enbridge Inc.

An upgrade is likely if the transaction is completed, and if we assess Westcoast's group status as core.

We could revise the outlook to stable if the transaction does not close.