S&P affirms Nova Scotia Power, Emera

Standard & Poor's said it affirmed the BBB+ long-term corporate credit rating on Nova Scotia Power Inc. as well as the BBB+ long-term corporate credit rating on Emera Inc.

The outlook is stable.

Ratings on Nova Scotia Power reflect the consolidated business risk and financial risk profiles of its sole shareholder, Emera Inc., S&P analyst Bato Kacarevic said in a statement.

Ratings on Emera reflect its stable and predictable regulated cash flows from its utility operations, underpinning the strong business risk profile, the agency said.

The stable and predictable earnings from Emera's primary regulated businesses, Nova Scotia Power and Maine-based Bangor Hydro-Electric Co. (not rated), and the Brunswick Pipeline support the ratings, the agency said.

A significant financial risk profile and some exposure to higher risk energy marketing offset these strengths, the agency noted.

Nova Scotia Power benefits from its monopoly position as the principal electricity supplier in the Province of Nova Scotia (A+/stable/A-1+) and its risk profile has improved with the introduction of a fuel-adjustment mechanism, which will result in pass-through of fuel costs into rates, according to the agency.

S&P said it expects Emera to maintain a debt-to-EBITDA ratio of less than 6x.

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