S&P affirms Electricity Distributors

Standard & Poor's said it affirmed the A rating on Electricity Distributors Finance Corp.'s senior unsecured debt.

The company is a special-purpose corporation that acts as a financial conduit for participating local distribution companies in the Province of Ontario, S&P said.

The rating on its C$175 million of 6.45% unsecured debentures series 2002-1 outstanding reflects a view of the least creditworthy participant supporting the debentures, because the company's structure does not provide for pooled credit support, the agency said.

The rating reflects a view of both participants' excellent business risk profiles as regulated electricity distribution companies and an expectation that they will maintain their intermediate financial risk profiles, S&P said.

The rating reflects an assumption that both participants will take steps to arrange and secure the sources of repayment in the near term for their respective portion of the C$175 million of Electricity Distributors debenture maturing in August 2012, the agency added.

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