DBRS Morningstar Notes Toronto Hydro Corporation's Commercial Paper Limit Increase

DBRS Limited (DBRS Morningstar) notes that Toronto Hydro Corporation (Toronto Hydro or the Company; rated “A” with a Stable trend by DBRS Morningstar) increased the limit on its Commercial Paper (CP) program to $1 billion from $750 million. Toronto Hydro’s CP program is backstopped by a $1 billion revolving credit facility maturing in September 2027 (the Credit Facility).

Based on its review, DBRS Morningstar is satisfied that the Company’s revised CP program limit and the Credit Facility continue to meet DBRS Morningstar’s requirements with respect to the “DBRS Morningstar Global Criteria: Commercial Paper Liquidity Support for Nonbank Issuers.” DBRS Morningstar is of the view that the increase in Toronto Hydro’s CP program limit has no impact on the credit profile of the Company. The current DBRS Morningstar rating on Toronto Hydro’s CP program is R-1 (low) with a Stable trend.

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 applicable to the rating is the Global Methodology for Rating Companies in the Regulated Electric, Natural Gas, and Water Utilities Industry: https://www.dbrsmorningstar.com/research/402616/global-methodology-for-rating-companies-in-the-regulated-electric-natural-gas-and-water-utilities-industry (September 13, 2022).

The rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

DBRS Morningstar Global Criteria: Commercial Paper Liquidity Support for Nonbank Issuers: https://www.dbrsmorningstar.com/research/410196/dbrs-morningstar-global-criteria-commercial-paper-liquidity-support-for-nonbank-issuers (February 24, 2023).

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 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.

Information regarding DBRS Morningstar ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com or contact us at [email protected].

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