Fitch lowers Hydro-Quebec to negative

Fitch Ratings said it affirmed Hydro-Quebec's long-term issuer default rating at AA-, along with the AA- rating on its C$43.7 billion parity unsecured debentures and medium-term notes, short-term issuer default rating at F1+ and the F1+ rating on its $3.5 billion or equivalent in Canadian dollars authorized commercial-paper program.

The outlook was revised to negative from stable.

The company's debt obligations are secured by net revenues of the consolidated group, Fitch said.

The obligations are further secured by an irrevocable and unconditional payment guarantee by the Province of Quebec, ranking equally in right of payment with all the province's unsecured debt obligations, the agency said.

The negative outlook follows the recent revision of the province's outlook to negative from stable, Fitch said.

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