S&P's Fortis ratings unaffected

Standard & Poor's said Fortis Inc.'s (BBB+/stable/--) results for fiscal 2005 were in line with expectations and will not affect the current ratings. The company's credit metrics remained relatively stable, with funds from operations interest coverage and funds from operations to average total debt moving marginally higher to 3.2x and 15% respectively, from 3.1x and 14% in 2004.

The cash flow coverages are not expected to show any material improvement beyond their 2005 levels, the agency said, and the metrics are expected to remain weak for the rating as the company undertakes its significant capital expenditure program, which is estimated by Fortis to approach C$2 billion in the next five years.

The forecast capital expenditure builds on the C$425 million of expenditure undertaken in 2005. At year-end 2005, leverage as measured by total debt to total capital was 59%.

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