DBRS Assigns Rating of Pfd-2 (high) to Canadian Utilities Ltd Preferred Share Issue

DBRS has today assigned a rating of Pfd-2 (high) with a Stable trend to Canadian Utilities Limited’s (the Company) $275 million Cumulative Redeemable Second Preferred Shares Series Y (the Preferreds). The Preferreds will yield 4.00% per annum for the initial five-year period ending June 1, 2017. The dividend rate will reset on June 1, 2017, and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 2.40%. The Preferreds are redeemable by the Company on June 1, 2017, and on June 1 every five years thereafter. The Preferreds are being issued under the Short Form Base Shelf Prospectus dated September 12, 2011, and are expected to settle on or about September 21, 2011.

The Preferreds will rank on parity with any future series of Second Preferred Shares of Canadian Utilities Limited and net proceeds from the offering will be used for general corporate purposes.

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

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