Fitch assigns A- Alectra

Fitch Ratings said it assigned a first-time long-term issuer default rating of A- to Alectra Inc. The outlook is stable.

Fitch also assigned an instrument rating of A to Alectra’s senior unsecured debt.

Alectra’s ratings are supported by the company’s large-scale regulated electric distribution operations in high growth areas of Ontario. Additionally, Fitch views the rate-setting mechanisms employed by Alectra’s regulator, the Ontario Energy Board (OEB), to be highly constructive.

“While current FFO leverage is elevated, it is forecasted to improve to 5.2x with reducing regulatory lag and constructive rebasing expected in 2027,” Fitch said in a news release.

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