RE:RE:RE:RE:Undo Line 5 Shutdown Order Ottawa’s Filing Urges U.S. Courtyup.....
I don't think that ENB is in any imminent danger of cutting its dividend. I do consider that future dividend hikes at least over the next year or two will be challenged.
All that said, there are some warning signs here that have caused me to wait and see before reloading a position in ENB. I mentioned some of them in an earlier post regarding the fact that most of debt that will assume once the deal with Dominion is completed is variable rate and so ENB is counting on interest rates being lower in a year from now, assuming that the deal will meet regulatory approval. This may well happen but is not a given.
To this, I note another concern that has arisen over the past day. ENB did a financing of some debt and Fitch, one of the bond rating agencies, rated the security of the offering at BBB- which one level above junk bond status. They did however, continue to rate ENB's overall debt structure at BBB+ which is OK but the rating on the new issue to me shows a small crack in the "fortress".
Given my disciplined proagmatic approach to investing, this leads me to consider other places to put mu money for the time being. I still like ENB but with the red flags, I will need to see how things play out over the next while.