S&P affirms Fortis

Standard & Poor's said it affirmed Fortis Inc.'s BBB+ corporate credit and BBB senior unsecured debt ratings and the A- senior secured debt rating with a recovery rating of 1 on subsidiary Newfoundland Power Inc.'s first mortgage bonds.

The rating on subsidiary Maritime Electric Co. Ltd.'s first mortgage bonds was raised to A- with a 1+ recovery rating from BBB+ to reflect the secured nature of the debt instruments.

The outlook was revised to stable from negative.

The outlook was revised to reflect greater stability in Fortis' business and financial profiles and reduced concern surrounding the level of operational and funding risk involved with its major capital expenditure program, the agency said.

S&P said the ratings on Fortis reflect its diversified portfolio of utility operations, monopoly electricity distribution operations, largely regulated cash flows and growing residential and commercial customer base.

These strengths are offset by a moderately aggressive financial profile; operating and capital expenditure challenges in its service territories; investments in, and exposure to, higher-risk commercial and hospitality real estate, merchant and contracted generation and investments in Belize.

© 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.