DBRS Morningstar Assigns Ratings of “A” with Stable Trends to Toronto Hydro Corporation’s $350 Million Senior Unsecured Debentures Issuances

DBRS Limited (DBRS Morningstar) assigned ratings of “A” with Stable trends to Toronto Hydro Corporation’s (Toronto Hydro or the Company) $350 million Senior Unsecured Debentures (the Debentures) offering, which is composed of $150 million of 2.47% Debentures (Series 17) due in 2031 and $200 million of 3.27% Debentures (Series 18) due in 2051. The ratings assigned to the Debentures are based on the ratings of other already-outstanding series of Senior Unsecured Debentures & MTNs.

The Debentures are direct unsecured obligations of Toronto Hydro and rank equally (except as to sinking funds and to the extent prescribed by law) with all other unsecured and unsubordinated indebtedness of the Company. Toronto Hydro will use the net proceeds to reduce certain indebtedness of the Company, including, but not limited to, refinancing the Company’s outstanding debentures upon maturity, financing the Company’s capital expenditure program, and for general corporate purposes.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

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

The principal methodology is Rating Companies in the Regulated Electric, Natural Gas, and Water Utilities Industry (September 24, 2021; https://www.dbrsmorningstar.com/research/384922), which can be found on dbrsmorningstar.com under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (February 3, 2021; https://www.dbrsmorningstar.com/research/373262).

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

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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