DBRS Rates BRP Finance ULC Senior Unsecured Notes at BBB (high)

DBRS has today assigned a provisional rating of BBB (high) with a Stable trend to BRP Finance ULC’s (BRPF) prospective issue of $400 million 4.79% senior unsecured notes (the Notes) due February 7, 2022. The Notes will be fully and unconditionally guaranteed by Brookfield Renewable Energy Partners LP (rated BBB (high) with a Stable trend).

The Notes are being offered pursuant to the company’s short-form base shelf prospectus dated January 23, 2012, and a related prospectus supplement. The Notes will rank equally with all other senior unsecured notes and debentures. Proceeds from the offering will be used mostly to repay existing borrowings in Brazil, with the balance used to repay drawn amounts under the corporate credit facility. The issue is expected to close on or about February 7, 2012.

DBRS notes that refinancing is credit neutral, as the negative impact on the deconsolidated metrics and incremental exposure to foreign exchange rates will be mitigated by improvement in consolidated metrics resulting from savings on debt service expenses achieved through the refinancing.

Assignment of the final rating is subject to receipt by DBRS of final documentation that is consistent with that which DBRS has already reviewed.

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

The applicable methodology for this rating is Rating Companies in the Non-Regulated Electric Generation Industry, which can be found on our website under Methodologies.