DBRS Morningstar Assigns Credit Rating of A (low) with Stable Trend to EPCOR Utilities Inc.’s $250 Million Medium-Term Notes Reopening

DBRS Limited (DBRS Morningstar) assigned a credit rating of A (low) with a Stable trend to EPCOR Utilities Inc.’s (EPCOR or the Company) 5.326% $250 million Medium-Term Notes Reopening which mature on October 3, 2053 (the Notes). The assigned credit rating is based upon the credit rating of an already-outstanding series of the above-mentioned debt instrument. The Notes settled on December 1, 2023.

The Notes are direct, unsecured, and unsubordinated obligations of EPCOR, and rank equally, except for sinking funds and statutory preferred exceptions, with all other unsecured and unsubordinated indebtedness of the Company. EPCOR will use the net proceeds for general corporate purposes, including repayment of existing indebtedness and financing its capital expenditure program and working capital requirements.

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 (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).

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 credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

DBRS Morningstar had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

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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