DBRS Confirms Hydro One Brampton Networks Inc. at “A” with Stable Trend

DBRS Limited (DBRS) has today confirmed the Issuer Rating of Hydro One Brampton Networks Inc. (HOBNI or the Company) at “A” with a Stable trend. The rating reflects the stability of the Company’s electricity distribution business operating under a transparent and supportive regulatory framework in a strong and growing franchise area. HOBNI’s financial risk profile is reasonable with key credits metrics that are supportive of the “A” rating.

The Company’s rating is issued on a stand-alone basis, independent of any explicit support from the Province of Ontario (the Province; rated AA (low) with Stable trend by DBRS). DBRS has not rated HOBNI’s long-term debt in the form of promissory notes issued by the Company to the Province. DBRS does not expect the proposed acquisition of HOBNI by the entity formed by the amalgamation of Enersource Corporation (rated “A,” Under Review with Developing Implications by DBRS), Horizon Utilities Corporation (not rated by DBRS) and PowerStream Inc. (rated “A,” Under Review with Developing Implications by DBRS) to affect the Company’s stand-alone credit quality. The rating is likely to be discontinued on closing of the acquisition.

DBRS has assigned this rating at HOBNI’s request for regulatory purposes only and no separate rating report is being issued.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodology is Rating Companies in the Regulated Electric, Natural Gas and Water Utilities Industry, which can be found on our website under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

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