DBRS Morningstar Assigns Rating of “A,” Stable, to Toronto Hydro’s $200 Million Senior Unsecured Debentures Issuance

DBRS Limited (DBRS Morningstar) assigned a rating of “A” with a Stable trend to Toronto Hydro Corporation’s (Toronto Hydro or the Company) 5.13% $200 million Senior Unsecured Debentures maturing on October 12, 2028 (the Debentures). The rating being assigned is based upon the rating on the already-outstanding series of the above-mentioned debt instrument. The Debentures settled on October 12, 2023.

The Debentures are direct unsecured obligations of Toronto Hydro and rank equally (except for sinking funds and to the extent prescribed by law) with all other unsecured and unsubordinated indebtedness of the Company. Toronto Hydro will use the net proceeds to repay certain indebtedness under the Company’s commercial paper program, the proceeds of which were used for general corporate purposes.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) 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/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings (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 27, 2023; https://www.dbrsmorningstar.com/research/421106/global-methodology-for-rating-companies-in-the-regulated-electric-natural-gas-and-water-utilities-industry).

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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