KBRA Releases Research – KBRA Zooms in on Canadian Energy

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases a new report focusing on Canadian Energy. As KBRA expands our energy sector coverage, we would be remiss if we overlooked what is taking place in Canada.

In the KBRA Zooms in on Canadian Energy report, we highlight our credit views on a sample portfolio of 60 Canadian energy producers and discusses policy decisions by the sovereign and sub-sovereign governments that have an impact on the sector. The report also provides an overview of the dynamics underway in Canada’s oil sector in regard to pricing, supply, and exports. On balance, KBRA leans toward being constructive on the sector over the long term as infrastructure shortfalls are more likely to be addressed. Our view on the sector considers the improving performance of the model portfolio of Canadian energy corporates over the last two years as well as the policy environment, which may turn out to be the fulcrum that rebalances Canada’s energy story toward a more positive direction. This commentary builds on KBRA’s emphasis on bringing together viewpoints and expertise from across the company, in this case Sovereigns and Corporates, in order to maximize analytical depth.

The main takeaways include:

  • Recent trends in KBRA’s sample portfolio of 60 Canadian energy companies reflect recovery in credit quality.
  • Widening oil price differentials in 2018 created a sense of urgency to address structural problems.
  • Proactive policy developments—including actions by both the federal government and the Province of Alberta—reflect the importance of Canada’s energy sector, support growth, stabilized prices in the short term and, over the long term, could help solve structural bottlenecks.
  • The introduction of new pipelines, additional rail capacity, and expanded domestic refinery operations are required for Canada to regain its position as a strong energy exporter.

To view the report, click here.

Related Publications: (available at www.kbra.com)

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical:
Corinne Hill, CFA, Senior Director, Corporates
(646) 731-3331
chill@kbra.com

Joan Feldbaum-Vidra, Managing Director, Sovereigns
(646) 731-3329
jfeldbaumvidra@kbra.com

Van Hesser, Senior Managing Director
(646) 731-2305
vhesser@kbra.com

Contacts

Analytical:
Corinne Hill, CFA, Senior Director, Corporates
(646) 731-3331
chill@kbra.com

Joan Feldbaum-Vidra, Managing Director, Sovereigns
(646) 731-3329
jfeldbaumvidra@kbra.com

Van Hesser, Senior Managing Director
(646) 731-2305
vhesser@kbra.com