Morningstar DBRS Assigns Ratings of A (low) With Stable Trend to Ontario Power Generation Inc.’s $500 Million Series 11 and $500 Million Series 12 Medium-Term Notes

DBRS Limited (Morningstar DBRS) assigned ratings of A (low) with Stable trends to Ontario Power Generation Inc.’s (OPG or the Company; rated A (low) with a Stable trend by Morningstar DBRS) $500 million 4.831% Series 11 Medium Term Notes maturing on June 28, 2034, and $500 million 4.99% Series 12 Medium Term Notes maturing on June 28, 2054 (together, the Series 11 and 12 Notes). Morningstar DBRS based the Series 11 and 12 Notes ratings on its rating of the already-outstanding series of the above-mentioned debt instruments.

The Series 11 and 12 Notes are direct unsecured obligations of OPG and rank equally and pari passu with all other medium term notes issued and outstanding from time to time under the Trust Indenture (regardless of their actual dates or terms of issue) and, subject to statutory preferred exceptions, with all other present and future unsubordinated and unsecured indebtedness of the Company, except as to any sinking fund provisions applicable to different series of medium term notes and other types of obligations of the Company. OPG will use proceeds from the Series 11 and 12 Notes to finance or refinance, in part or in full, new and/or existing Eligible Green Projects (as defined in the Company’s Sustainable Finance Framework).

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://dbrs.morningstar.com/research/427030 (January 23, 2024).

BUSINESS RISK ASSESSMENT (BRA) AND FINANCIAL RISK ASSESSMENT (FRA)
(A) Weighting of BRA Factors
In the analysis of OPG, the BRA factors were considered in the order of importance contemplated in the methodology.

(B) Weighting of FRA Factors
In the analysis of OPG, the FRA factors were considered in the order of importance contemplated in the methodology.

(C) Weighting of the BRA and the FRA
In the analysis of OPG, the BRA carries greater weight than the FRA.

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

-- Global Methodology for Rating Companies in the Regulated Utility and Independent Power Producer Industries (June 27, 2024; https://dbrs.morningstar.com/research/435127/).

Morningstar DBRS credit ratings may use of one or more sections of the Morningstar DBRS Global Corporate Criteria (April 15, 2024; https://dbrs.morningstar.com/research/431186), which covers, for example, topics such as holding companies and parent/subsidiary relationships, guarantees, recovery, and common adjustments to financial ratios.

The following methodologies have also been applied:
-- Morningstar DBRS Global Corporate Criteria (April 15, 2024; https://dbrs.morningstar.com/research/431186); and
-- Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (January 23, 2024; https://dbrs.morningstar.com/research/427030).

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

A description of how Morningstar DBRS analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://dbrs.morningstar.com/research/397223.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

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

Information regarding Morningstar DBRS credit ratings, including definitions, policies, and methodologies, is available on dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

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