DBRS Morningstar Confirms Waterloo North Hydro Inc. at A (low), Stable

DBRS Limited (DBRS Morningstar) confirmed the Issuer Rating of Waterloo North Hydro Inc. (Waterloo North or the Company) at A (low) with a Stable trend. The rating reflects the stability of Waterloo North’s electricity distribution business operating under a reasonable regulatory framework in a growing franchise area as well as the Company’s strong financial risk profile. Waterloo North’s rating is one notch lower than its DBRS Morningstar-rated peers in the Ontario electricity distribution sector, largely as a result of the Company’s above-average refinancing risk.

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 methodology is Rating Companies in the Regulated Electric, Natural Gas, and Water Utilities Industry (October 27, 2020), 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.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrsmorningstar.com.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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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