Moody’s gives Lower Mattagami bond A2

Moody's Investors Service said it affirmed the A2 senior secured rating as well as the Prime-1 short term rating for commercial paper assigned to Lower Mattagami Energy LP.

Concurrently, the agency assigned an A2 rating to the C$220 million 10-year senior secured bond expected to be issued by Lower Mattagami.

The outlook remains stable.

Proceeds from the bond issue will be used to repay Lower Mattagami’s outstanding commercial paper as it matures. With this new debt issue, the company has completed its long-term debt financing program for the project.

The series 2016-1 bonds will be secured obligations and rank equally with all other existing and future secured debt of Lower Mattagami pursuant to its Capital Market Platform documented by way of a master trust indenture dated August 17, 2010 as supplemented from time to time, the agency said.

In addition, Ontario Power Generation Inc. (OPG), which is owned by the province of Ontario (Aa2, stable), unconditionally guarantees Lower Mattagami’s debt obligations, including its commercial paper, until the recourse release date.

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