EEP’s net debt-to-EBITDA ratio
Enbridge Energy Partners’ (EEP) net debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) ratio is 5x. While this is slightly on the higher side, the ratio remained relatively stable in 2016. Enbridge Energy Partners did not issue any common units in 2016.
The above graph shows EEP’s quarterly net debt-to-EBITDA ratios over the last three years.
Remember, debt-to-EBITDA ratios are often used to assess a company’s ability to repay debt. The ratio commonly used by credit rating agencies to determine a company’s credit rating, and a lower ratio is generally considered better.
In the next part of this series, we’ll take a key look at EEP’s distributions.