DBRS Releases Report on Newalta Corporation

DBRS has today released a report on Newalta Corporation (Newalta or the Company) that supports the recent trend change of the Company’s BB (low) Issuer Rating to Positive from Stable and the downgrade of its Unsecured Debt rating to BB (low) from BB, with a Positive trend.

The trend change reflects the fact that the Company has performed above expectations, with operating performance almost returned to pre-recession levels. The downgrade of the Unsecured Notes is due to the recovery rating having been downgraded to RR4 from RR2 to reflect our expectation of lower recovery, solely due to an anticipated increase in the amount of unsecured debt, in the event that Newalta refinances its maturing convertible debentures (which now rank junior to unsecured debt) with the same amount of unsecured debt.

Today’s report and the October 11, 2011, press release are available by clicking the link under Related Research at the right of the screen or by contacting us at info@dbrs.com.