DBRS Confirms Electricity Distributors Finance Corporation at A (low)

DBRS has today confirmed the rating on the Series 2002-1 Certificates (the Certificates) issued by Electricity Distributors Finance Corporation (EDFIN) at A (low) with a Stable trend. The rating is based on the lowest-rated of the two participants, Enwin Utilities Ltd. (Enwin), rated A (low).

The Certificates represent undivided co-ownership interests in unsecured debentures issued by two participating local distribution companies (LDC Participants), namely PowerStream Inc. (PowerStream) and Enwin to EDFIN. The obligations of the individual LDC Participants are several and not joint, and each LDC Participant is liable only for its own obligations and not for the obligations of any other LDC Participant. Default of the obligations to EDFIN of one LDC Participant will result in a proportionate default of the unsecured debentures issued by EDFIN. Therefore, the rating of the Certificates is based on the rating of the lowest-rated LDC Participant, Enwin.

DBRS has confirmed the Issuer Rating of Enwin at A (low) with a Stable trend. Enwin continues to benefit from a low level of business risk stemming from its regulated electricity distribution operations, its reasonable financial profile and a strong record of cost-containment.

DBRS has also confirmed the Issuer Rating of PowerStream, at “A” with a Stable trend. PowerStream continues to benefit from a low level of business risk stemming from its regulated electricity distribution operations, its solid financial profile and a strong franchise area with a favourable customer mix. PowerStream merged with Barrie Hydro Distribution Inc. on January 1, 2009, resulting in a combined entity that provides greater diversification and would benefit from strong population growth in the city of Barrie.
Overall, the two LDC Participants continue to benefit from a low level of business risk stemming from their regulated electricity distribution operations, solid financial profile and strong franchise areas with a favourable customer mix. The rating confirmations on the LDC Participants is also supported by the stable regulatory outlook in Ontario.

Note:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating North American Energy Utilities (Electric, Natural Gas, and Pipelines), which can be found on our website under Methodologies.