Moody's rates Lower Mattagami Energy bonds A2

Moody's Investors Service said it assigned an A2 rating to the 10-year and 30-year senior secured bonds (the series 2011-3 and 2011-4 bonds) totaling up to C$450 million expected to be issued by Lower Mattagami Energy LP.

It also affirmed the prime-1 short-term rating and the A2 issuer rating.

The outlook remains stable.

The proceeds will be used to refinance outstanding commercial paper notes and to pay for or refinance redevelopment and expansion costs related to the Lower Mattagami river complex.

The ratings reflect the importance of the project and supportive terms and conditions of the bonds, Moody's said, along with the fundamental strength of the credit.

The strengths are tempered the possible increase in leverage over the term of the bonds and an on-going refinancing risk, the agency said.

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