DBRS Morningstar Assigns Rating of “A” with Stable Trend to Toronto Hydro Corporation’s 4.95% $300 Million Senior Unsecured Debentures

DBRS Limited (DBRS Morningstar) assigned a rating of “A” with a Stable trend to Toronto Hydro Corporation’s (Toronto Hydro or the Company) 4.95% $300 million Senior Unsecured Debentures maturing on October 13, 2052 (the Debentures). The rating being assigned is based upon the rating on the already-outstanding series of the above-mentioned debt instrument. The Debentures settled on October 13, 2022.

The Debentures are direct unsecured obligations of Toronto Hydro and rank equally (except for 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, to finance the Company’s capital expenditure program and for general corporate purposes.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
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 (May 17, 2022).

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

The principal methodology is the Global Methodology for Rating Companies in the Regulated Electric, Natural Gas, and Water Utilities Industry (https://www.dbrsmorningstar.com/research/402616/, September 13, 2022), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

A description of how DBRS Morningstar analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/397223/interplay-of-global-corporate-finance-rating-methodologies-when-analyzing-corporate-finance-transactions

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.

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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