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Announcement:
Moody's: Kinder Morgan's sale of the Trans Mountain Pipeline system and expansion is credit positive

29 May 2018
Toronto, May 29, 2018 -- Moody's Investors Service said that the announced sale by Kinder Morgan Canada Limited (KML, unrated) of its Trans Mountain Pipeline system (TMP) and Trans Mountain Expansion Project (TMEP) are credit positive for Kinder Morgan Inc. (KMI, Baa3 stable, 70% owner of KML) because it removes the significant risk attached to the TMEP expansion, eliminating at least C$6.4 billion (before potential cost overruns) of additional capital to complete the project and the uncertainty of construction scheduling and completion given the opposition to the project from the Province of British Columbia, environmentalists and some First Nations. KMI had backstopped the 40% equity component needed to fund the full C$7.4 billion construction capex in the event that KML had been unable to raise the necessary equity.



We expect the rated C$5.5 billion construction facility of Kinder Morgan Cochin ULC (Baa3 stable) will be cancelled and we will withdraw that rating at that time.



This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.


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