DBRS Morningstar Assigns Rating of A (low), Stable, to EPCOR Utilities Inc.’s $450 Million Medium-Term Notes Issuance

DBRS Limited (DBRS Morningstar) assigned a rating of A (low) with a Stable trend to EPCOR Utilities Inc.’s (EPCOR or the Company) 4.725% $450 million Medium-Term Notes maturing on September 2, 2052 (the Notes). The assigned rating is based upon the rating of an already-outstanding series of the above-mentioned debt instrument. The Notes settled on September 2, 2022.

The Notes are direct, unsecured, and unsubordinated obligations of EPCOR, and rank equally, except for sinking funds and statutory preferred exceptions, with all other unsecured and unsubordinated indebtedness of the Company. EPCOR will use the net proceeds for general corporate purposes, including repayment of existing indebtedness and financing its capital expenditure program and working capital requirements.

There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

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/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.

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 (May 17, 2022; https://www.dbrsmorningstar.com/research/396929).

The conditions that lead to the assignment of a Negative or Positive trend are generally 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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