DBRS Assigns Rating of A (low) with a Stable Trend to Ontario Power Generation Inc.’s $500 Million Series 3 Medium-Term Notes due January 18, 2049

DBRS Limited (DBRS) assigned a rating of A (low) with a Stable trend to Ontario Power Generation Inc.’s (OPG or the Company) $500 million 4.248% Series 3 Medium-Term Notes (Series 3 Notes) maturing January 18, 2049. DBRS notes that the Series 3 Notes are a Green Bond issuance, with proceeds to be used to finance or refinance projects that meet the criteria established by OPG’s green bond framework, including the acquisition of Eagle Creek Renewable Energy LLC (acquisition completed in November 2018). The rating being assigned is based upon the rating on already-outstanding series of the above-mentioned debt instrument.

The Series 3 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 under the Trust Indenture and with all other present and future unsubordinated and unsecured indebtedness of the Company.

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 3 Notes to materially affect the Company’s credit profile.

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

The principal methodologies are Rating Companies in the Regulated Electric, Natural Gas and Water Utilities Industry (September 2018), and DBRS Criteria: Guarantees and Other Forms of Support (January 2018), which can be found on dbrs.com under Methodologies & Criteria.

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

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

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