DBRS Assigns Rating of A (low) with a Stable Trend to Ontario Power Generation Inc.’s $500 million Series 1 Medium Term Notes due October 4, 2027
Utilities & Independent PowerDBRS Limited (DBRS) assigned a rating of A (low) with a Stable trend to Ontario Power Generation Inc.’s (OPG or the Company) $500 million 3.315% Series 1 Medium Term Notes (Series 1 Notes) maturing October 4, 2027. DBRS notes that the Series 1 Notes represent OPG’s first public debt offering.
The Series 1 Notes are direct unsecured obligations of the Company and rank equally and pari passu with all other medium term notes issued and outstanding from time to time. The net proceeds from the sale of the Series 1 Notes will be used for general corporate purposes and to finance a portion of OPG’s debt investment in the Fair Hydro Financing Entity associated with the Fair Hydro Plan which was established by the Province of Ontario (rated AA (low) with a Stable trend by DBRS).
OPG’s ratings continue to be supported by strong cash flow-to-debt and debt-to-capital ratios and DBRS does not expect the Series 1 Notes to materially impact the Company’s credit profile.
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 principal methodologies are Rating Companies in the Regulated Electric, Natural Gas and Water Utilities Industry (September 2017), DBRS Criteria: Guarantees and Other Forms of Support (February 2017) and DBRS Criteria: Commercial Paper Liquidity Support for Non-Bank Issuers (March 2017), which can be found on dbrs.com under Methodologies.
For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.