DBRS Confirms New Brunswick Power Holding Corporation at A (high) with Stable Trend

DBRS has today confirmed New Brunswick Power Holding Corporation’s (NB Power) Guaranteed Long-Term Debt rating at A (high) with Stable trend. This rating is based on the guarantee of the Province of New Brunswick (the Province), whose ratings were recently confirmed at A (high) and R-1 (middle) for Long-Term and Short-Term Debt, respectively (see separate press release).

The Guaranteed Long-Term Debt rating applies only to the $125 million of Debentures (maturing October 12, 2008) that were initially issued by NB Power’s predecessor corporation, New Brunswick Power Corporation, with a Province of New Brunswick guarantee. Following the restructuring of New Brunswick Power Corporation, these Debentures were assumed by New Brunswick Electric Finance Corporation (Finco), an agent of the Crown, and continue to have the provincial guarantee.

The Province supports NB Power by providing all of its funding through Finco. Therefore, NB Power does not issue debt in the capital markets. Furthermore, NB Power does not have any outstanding Guaranteed Short-Term Debt. Hence, DBRS has discontinued the Guaranteed Short-Term Debt rating on NB Power.

Note:
All figures are in Canadian dollars unless otherwise noted.
The Guaranteed Long-Term Debt of the New Brunswick Power Holding Corporation has been assumed by the New Brunswick Electric Finance Corporation and guaranteed by the Province of New Brunswick.