Morningstar DBRS Finalizes Provisional Credit Rating of BBB With a Stable Trend on Lièvre Power Holdings LP's Series C Bonds
Project FinanceDBRS Limited (Morningstar DBRS) finalized its provisional credit rating of BBB with a Stable trend on Lièvre Power Holdings LP's (the Issuer) $99.733 million Series C Bonds.
The credit rating to this newly issued debt instrument is based on the credit ratings of an already-outstanding debt series (Series A and B Bonds) of the above-mentioned debt instrument. The Senior C Bonds rank pari passu with the Series A and Series B Bonds. Morningstar DBRS confirmed the credit ratings of the Series A and Series B Bonds at BBB, Stable, on January 15, 2025.
The proceeds of Series C Bonds will be used to refinance the outstanding balance of Series 1 Senior Bonds issued by Lièvre Power Financing Corporation, which is a single-purpose funding vehicle established to finance Lièvre Power L.P.'s operations of four hydroelectric generating facilities on the Lièvre River in Québec.
Morningstar DBRS has reviewed and is satisfied with the second and third supplemental trust indentures and final financial model provided by the Issuer to Morningstar DBRS as of June 26, 2025.
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) 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 Factors in Credit Ratings (May 16, 2025) https://dbrs.morningstar.com/research/454196.
RATING DRIVER FACTORS AND FINANCIAL RISK ASSESSMENT (FRA)
A) Weighting of Rating Driver Factors
In the analysis of the Issuer, the Rating Driver factors listed in the methodology "Global Methodology for Rating Project Finance" are considered in the order of importance.
B) Weighting of FRA Factors
In the analysis of the Issuer, the following FRA factor listed in the methodology "Global Methodology for Rating Project Finance" is considered more important: debt service coverage ratio. The project life coverage ratio to assess refinancing risk doesn't constrain the credit rating.
C) Weighting of the Rating Driver Assessment and the FRA
In the analysis of the Issuer, the FRA carries greater weight than the Rating Driver Factors.
Notes:
All figures are in Canadian dollars unless otherwise noted.
Morningstar DBRS applied the following principal methodology: Global Methodology for Rating Project Finance (December 10, 2024)
https://dbrs.morningstar.com/research/444393
Morningstar DBRS credit ratings may use one or more sections of the Morningstar DBRS Global Corporate Criteria (February 3, 2025, https://dbrs.morningstar.com/research/447186), which covers, for example, topics such as holding companies and parent/subsidiary relationships, guarantees, recovery, and common adjustments to financial ratios.
The following methodology has also been applied:
Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (May 16, 2025)
https://dbrs.morningstar.com/research/454196
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/431153.
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info-DBRS@morningstar.com.
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.
For more information on Morningstar DBRS' policy regarding the solicitation status of credit ratings, please refer to the Credit Ratings Global Policy, which can be found in the Morningstar DBRS Understanding Ratings section of the website: https://dbrs.morningstar.com/understanding-ratings
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.
DBRS Limited
DBRS Tower, 181 University Avenue, Suite 600
Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577
Ratings
ALL MORNINGSTAR DBRS RATINGS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AND ADDITIONAL INFORMATION REGARDING MORNINGSTAR DBRS RATINGS, INCLUDING DEFINITIONS, POLICIES, RATING SCALES AND METHODOLOGIES.