DBRS Morningstar Notes Toronto Hydro Corporation's Commercial Paper Limit Increase

DBRS Limited (DBRS Morningstar) noted that Toronto Hydro Corporation (Toronto Hydro or the Company; rated “A” with a Stable trend by DBRS Morningstar) has increased the limit on its Commercial Paper (CP) program to $750 million from $600 million. Toronto Hydro’s CP program is backstopped by a $800 million revolving credit facility maturing in October 2024 (the Credit Facility).

Based on its review, DBRS Morningstar is satisfied that the Company’s revised CP program limit and the Credit Facility continue to meet DBRS Morningstar’s requirements with respect to the “DBRS Morningstar Criteria: Commercial Paper Liquidity Support for Nonbank Issuers.” DBRS Morningstar is of the view that the increase in Toronto Hydro’s CP program limit has no impact on the credit profile of the Company. The current DBRS Morningstar rating on Toronto Hydro’s CP program is R-1 (low) with a Stable trend.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodologies are Rating Companies in the Regulated Electric, Natural Gas and Water Utilities Industry (September 16, 2019), DBRS Morningstar Criteria: Commercial Paper Liquidity Support for Nonbank Issuers (March 10, 2020), and DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 25, 2019), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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