Moody's affirms Avista on acquisition news

Moody's Investors Service said it affirmed the ratings of Avista Corp., including its Baa1 long-term issuer rating, following news that it agreed to be acquired by Hydro One, Ltd.

The outlook is stable.

The ratings reflect an understanding that the acquisition debt, to be issued by Hydro One, will be a direct obligation of the larger, more diverse Canadian holding company and should not affect Avista's standalone financial profile, Moody's said.

On July 19, Hydro One announced it reached an agreement to acquire Avista for $53 per share in a $5.3 billion all-cash transaction, including the assumption of roughly $1.9 billion of Avista debt, the agency said.

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