Moody’s revises Ontario Electricity to negative

Moody's Investors Service said it changed the Ontario Electricity Financial Corp.’s outlook to negative from stable and affirmed the long-term senior unsecured ratings at Aa2.

The change in outlook reflects the change in the outlook on the Province of Ontario (Aa2/NEG)), which guarantees Ontario Electricity’s rated debt.

The company’s Aa2 rating is identical to the province's rating by virtue of the Province's guarantee of the rated debt. All of Ontario Electricity’s debt is either held or guaranteed by the province. Ontario Electricity’s baseline credit assessment is also the same as the province's baseline credit assessment, reflecting the agency’s view that the company is a branch of the provincial government given the extensive governance, operating, financial and public policy linkages.

Moody’s also changed Ontario Power Authority's outlook to negative from stable and affirmed the issuer rating at Aa2. The change also reflects the outlook change of the province.

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