DBRS confirms Algonquin Power

DBRS said it confirmed the BBB (low) rating and stable trend assigned to the senior debentures issued by Algonquin Power & Utilities Corp. subsidiary Algonquin Power Co.

The companies announced a plan to acquire four wind power generation facilities in the United States. The $888 million acquisition will be through a partnership that is 51% owned by subsidiary Algonquin Power. It plans to fund its $269 million portion of the acquisition costs with 45% debt and 55% equity. The agency said the resulting credit metrics are expected to be consistent with the subsidiary's financial profile prior to the acquisition.

With the acquisition, Algonquin Power will have a larger and more diversified power generation portfolio with reasonable contract protection and solid operating performance, DBRS said, and the transaction is considered a modest improvement in its business risk profile.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.