Credit Rating RiskDebt leverage remains above levels typically required for an investment grade rating, limiting near-term prospects for a credit upgrade and keeping borrowing costs elevated.
Deleveraging RequirementImprovement in credit metrics depends on further deleveraging, meaning distribution growth and acquisition capacity could be constrained until meaningful debt reduction occurs.
Relative Valuation Versus PeersOn a leverage-neutral basis, relative valuation is not compelling compared with large-cap Canadian industrial peers, which may reduce investor appetite relative to alternatives.