DBRS confirms ATCO

DBRS said it confirmed the short-term issuer rating at R-1 (low) and issuer rating at A (low) on ATCO Ltd.

The trend is stable.

The ratings reflect the strong credit quality of ATCO's principal subsidiary, Canadian Utilities Ltd., DBRS said, and very low leverage at the parent level.

The one-notch differential in the ratings of ATCO and CU reflects structural subordination of debt at ATCO, the agency said.

CU's contributions account for about 80% of ATCO's total earnings, DBRS said.

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