Algonquin Power & Utilities Corp.: Rating Report

DBRS Limited (DBRS) confirmed the Issuer Rating and Preferred Shares rating of Algonquin Power & Utilities Corp. (APUC or the Company) at BBB (low) and Pfd-3 (low), respectively. Both trends are Stable. The ratings reflect a significant improvement of APUC’s business risk profile following the acquisition of Empire District Electric Company (Empire) and a successful integration of Empire into the Company’s regulated utility operations. The ratings also reflect stable and strong cash flow from its two principal subsidiaries (1) Liberty Utilities Co. (LUCO) – the guarantor of the debt issued by Liberty Utilities Finance GP1 (rated BBB (high) with Stable trends by DBRS) and (2) Algonquin Power (APCO; rated BBB (low) with Stable trends by DBRS). The ratings are further supported by the fact that there is either no or minimal debt issued by APUC at the holding company level.