Algonquin Power & Utilities Corp.: Rating Report

On February 11, 2021, DBRS Limited (DBRS Morningstar) confirmed the Issuer Rating and Preferred Shares rating of Algonquin Power & Utilities Corp. at BBB and Pfd-3, respectively. Both trends are Stable. The rating confirmations reflect low debt leverage at the corporate level, as well as stable and strong cash flow from its three principal subsidiaries: (1) Liberty Utilities Co., the guarantor of the debt issued by Liberty Utilities Finance GP1 (rated BBB (high) with a Stable trend by DBRS Morningstar); (2) Liberty Utilities (Canada) LP (rated BBB with a Stable trend by DBRS Morningstar); and (3) Algonquin Power Co. (operating as Liberty Power; rated BBB with a Stable trend by DBRS Morningstar). These three entities accounted for approximately 90% of cash flow in 2020.