Stability & Credit Ratings

Enbridge Income Fund

* Under review with developing implications

Ordinary Units

DBRS has assigned a stability rating of STA-2 (middle) to the Ordinary Units. The stability rating is based on a rating scale developed by DBRS that provides an indication of both the stability and sustainability of an income fund's distributions per unit. Ratings categories range from STA-1 to STA-7, with STA-1l being the highest. DBRS further separates the ratings into high, middle and low to indicate where within the ratings category they fall. Ratings take into consideration the seven main factors of: (1) operating and industry characteristics; (2) asset quality; (3) financial flexibility; (4) diversification; (5) size and market position;, (6) sponsorship/governance; and (7) growth. In addition, consideration is given to specific structural or contractual elements that may eliminate or mitigate risks or other potentially negative factors.

Income funds rated at STA-2 are considered to have very good distributions per unit stability and sustainability. These income funds typically show above-average strength in areas of consideration, and possess levels of distributable income per unit which are not likely to be significantly affected by foreseeable events. These income funds are above-average in many, if not most, areas of consideration.

The stability rating assigned by DBRS is not a recommendation to buy, sell or hold the Ordinary Units. DBRS stability ratings do not take such factors as pricing or stock market risk into consideration.

Medium Term Notes

The Medium Term Notes have received a rating of "BBB (high)" from DBRS and a rating of "Baa2" with a stable outlook from Moody’s. The credit ratings accorded to the Medium Term Notes by these rating agencies are not recommendations to purchase, hold or sell the Medium Term Notes as such ratings do not comment as to market price or suitability for a particular investor. There is no assurance that any rating will remain in effect for any given period of time or that any rating will not be revised or withdrawn entirely by a rating agency in the future if, in its judgement, circumstances so warrant.

DBRS rates debt instruments by rating categories ranging from a high of "AAA" to a low of "D". Each rating category is denoted by the subcategories "high" and "low". The absence of either a "high" or "low" designation indicates the rating is in the "middle" of the category. The "AAA" and "D" categories do not utilize "high", "middle" and "low" as differential grades. The rating of "BBB (high)" from DBRS is characterized as "adequate credit quality" and is the fourth highest of ten available rating categories. Protection of interest and principal is considered acceptable, but the entity is fairly susceptible to adverse changes in financial and economic conditions, or there may be other adverse conditions present which reduce the strength of the entity and its rated securities.

Moody’s assigns ratings to debt instruments ranging from a high of "Aaa" to a low of "C". According to Moody’s rating system, debt securities rated "Baa" are considered as medium-grade obligations (i.e., they are neither highly protected nor poorly secured). Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such debt securities lack outstanding investment characteristics and in fact have speculative characteristics as well. Moody’s applies numerical modifiers 1, 2 and 3 in each generic rating classification from Aa through Caa in its corporate bond rating system. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.

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