Hydro One Limited: Rating Report

On April 14, 2022, DBRS Limited (DBRS Morningstar) confirmed the Issuer Rating and Senior Unsecured Debentures rating of Hydro One Limited (HOL or HoldCo) at "A" with Stable trends. The ratings of HOL are based on its wholly owned subsidiary, Hydro One Inc. (HOI or the Utility; rated A (high) with a Stable trend by DBRS Morningstar), which provides 99% of HoldCo's earnings and cash flows. The one-notch ratings differential between HOL and HOI reflects structural subordination of debt at HoldCo to the Utility. The confirmation reflects the stability of the distributions from HOI to HOL and the low nonconsolidated leverage at HoldCo (6.9% as at December 31, 2021).