DBRS Morningstar Assigns Rating of “A” With a Stable Trend to Newfoundland Power Inc.’s $90 Million First Mortgage Sinking Fund Bonds

DBRS Limited (DBRS Morningstar) assigned a rating of “A” with a Stable trend to Newfoundland Power Inc.’s $90 million 5.122% Series AS First Mortgage Sinking Fund Bonds (Series AS Bonds), maturing August 11, 2053. The Series AS Bonds settled on August 11, 2023. The rating assigned to this newly issued debt instrument is based on the rating of an already-outstanding debt series of the above-mentioned debt instrument.

The Series AS Bonds will be secured pari passu with all bonds issued and to be issued under the Deed of Trust and Mortgage dated September 15, 1966, and Deeds Supplemental thereto.

Net proceeds from the sale of the Series AS Bonds will be used to reduce short-term bank indebtedness incurred principally to fund capital expenditures and for general corporate purposes.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/416784 (July 4, 2023).

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

DBRS Morningstar applied the following principal methodology:
-- Global Methodology for Rating Companies in the Regulated Electric, Natural Gas, and Water Utilities Industry (September 13, 2022; https://www.dbrsmorningstar.com/research/402616).

The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

A description of how DBRS Morningstar analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/397223.

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

Information regarding DBRS Morningstar credit ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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