Caribbean Utilities Company, Ltd.: Rating Report

On February 5, 2020, DBRS Limited (DBRS Morningstar) confirmed all the ratings of Caribbean Utilities Company, Ltd. (CUC or the Company) as listed above. The confirmations reflect CUC’s strong credit metrics and stable business risk profile. The current ratings reflect (1) a supportive regulatory environment that allows CUC to earn good returns on its rate base and to generate predictable cash flow; (2) limited competition; and (3) no exposure to commodity price risk and only modest regulatory lag associated with the recovery of fuel and nonfuel costs as well as capital spending. The ratings also incorporate the CUC’s exposure to hurricane risks and the relatively small size of its operations and customer base.