TransAlta Corporation: Rating Report

On April 3, 2020, DBRS Limited (DBRS Morningstar) confirmed the Issuer Rating and Unsecured
Debt/Medium-Term Notes rating of TransAlta Corporation (TAC or the Company) at BBB (low) and TAC’s
Preferred Shares rating at Pfd-3 (low). The trends are Stable. DBRS Morningstar’s rating actions follow a
review of TAC’s 2019 financial results, as well as its business strategy and refinancing plan for corporate
debt. The Stable trends reflect DBRS Morningstar's view that (1) the exposure to merchant risk in the
Province of Alberta (Alberta or the Province; rated AA (low) with a Negative trend by DBRS Morningstar)
for 2020 is well hedged, (2) the Coronavirus Disease (COVID-19) pandemic (see the Coronavirus Impact
section for details) would not have material impact in the near term, and (3) TAC’s business risk and
2020 credit metrics (modified consolidated) are expected to remain solid and supportive of the current
ratings.