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Algonquin is ‘pleased’ with July boost in credit ratings from Fitch
By Devika Patel
Knoxville, Tenn., Aug. 10 – Algonquin Power & Utilities Corp. management was “pleased” with the upgrade in its ratings in July.
“We were pleased to receive a BBB flat, stable, long-term issuer rating from Fitch Ratings for [Algonquin] and its subsidiaries Liberty Power and Liberty Utilities,” chief financial officer David Bronicheski said on the company’s conference call on Friday for its second quarter ended June 30 earnings.
“In addition, we’ve received a BBB+ rating for our Liberty Utilities [Finance GP1] senior unsecured debt.
“We believe this rating again confirms the strength of [Algonquin’s] overall corporate balance sheet and our focus on maintaining a strong investment-grade credit rating,” he said.
Adjusted EBITDA for the quarter was $160.3 million, a 9% year-over-year increase.
On July 20, Fitch Ratings said it assigned a BBB long-term issuer default rating and an F2 short-term issuer default rating to Algonquin and to its regulated utility subsidiary, Liberty Utilities.
The agency also assigned a BBB long-term issuer default rating and an F3 short-term issuer default rating to Algonquin Power’s unregulated power generation subsidiary, Algonquin Power Co.
The outlook is stable.
In addition, Fitch assigned a BBB+ rating to the senior unsecured debt issued by Liberty Utilities Finance GP1.
The agency said at the time that Algonquin Power’s issuer default rating is appropriately positioned relative to peer parent holding companies, NextEra Energy, Inc. (A-, stable), Avangrid, Inc. (BBB+, stable) and CenterPoint Energy, Inc. (BBB, stable).
Fitch said on July 20 it projects the company’s consolidated funds from operations-adjusted leverage to average 4.8x to 5.2x through 2020, weaker than that of NextEra (3.6x to 4.1x) and Avangrid (2.8x to 3.2x) but slightly stronger than that of CenterPoint (5.5x).
Algonquin is a generation, transmission and distribution utility based in Oakville, Ont.
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