Manitoba Hydro-Electric Board, The: Rating Report

DBRS Limited (DBRS Morningstar) updated its report on the Manitoba Hydro-Electric Board (Manitoba Hydro or the Utility). The ratings assigned to the Utility’s Long-Term and Short-Term Obligations are a flow-through of the ratings of the Province of Manitoba (the Province; rated A (high) and R-1 (middle) with Stable trends by DBRS Morningstar). Pursuant to The Manitoba Hydro Act, the Province unconditionally guarantees almost all of Manitoba Hydro’s outstanding third-party debt. The Province also provides most of the Utility’s financing through provincial advances (approximately 99% of total debt as at March 31, 2019). Please see DBRS Morningstar’s Global Methodology for Government Related Entities for further details. DBRS Morningstar notes while Manitoba Hydro’s financial health remains pressured by the ongoing capex program, DBRS Morningstar still considers the Utility to be self-supporting as it can fund its own operations and service debt obligations.