DBRS Assigns Provisional Rating to Capital Power Corporation’s New Issue

DBRS Limited (DBRS) has today assigned a provisional rating of BBB with a Stable trend to Capital Power Corporation’s (CPC or the Company) Senior Unsecured Debt. This provisional long-term rating applies to the medium-term notes (MTNs) that would be guaranteed by Capital Power L.P. (CPLP; rated BBB by DBRS).

The provisional rating is based on a review of the documents provided by CPC, including the draft guarantee that would unconditionally guarantee all of CPC’s proposed debt issuance. The unconditional guarantee extends to principal and interest. Please see “DBRS Criteria: Guarantees and Other Forms of Explicit Support” for further detail. The assignment of a final rating is subject to receipt by DBRS of final documentation that is consistent with that which DBRS has already reviewed.

CPC plans to offer to exchange the following MTNs of CPLP for an equal principal amount of the newly issued Senior Unsecured Debt of CPC with financial and other terms that are the same as those attached to the MTNs of CPLP.

-- $300,000,000 5.276% Series 1 Notes maturing November 16, 2020
-- $250,000,000 4.850% Series 3 Notes maturing February 21, 2019

With the proposed guarantee, CPC’s provisional rating carries the same rating that DBRS has assigned to the existing CPLP’s Senior Unsecured Debt.

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

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are Rating Companies in the Independent Power Producer Industry, DBRS Criteria: Guarantees and Other Forms of Explicit Support, DBRS Criteria: Rating Holding Companies and Their Subsidiaries and DBRS Criteria: Preferred Share and Hybrid Criteria for Corporate Issuers, which can be found on our website under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.