DBRS Morningstar Notes Alectra Inc.’s Commercial Paper Limit IncreaseUtilities & Independent Power
DBRS Limited (DBRS Morningstar) noted that Alectra Inc. (Alectra or the Company; rated “A” with a Stable trend by DBRS Morningstar) has increased the limit on its Commercial Paper (CP) program to $700 million from $500 million. Alectra’s CP program is backstopped by a $700 million committed revolving credit facility maturing in August 2026.
Based on its review, DBRS Morningstar is satisfied that the Company’s revised CP program limit and the credit facility continue to meet DBRS Morningstar’s requirements with respect to the “DBRS Morningstar Criteria: Commercial Paper Liquidity Support for Nonbank Issuers.” DBRS Morningstar is of the view that the increase in Alectra’s CP program limit has no impact on the credit profile of the Company. The current DBRS Morningstar rating on Alectra’s CP program is R-1 (low) with a Stable trend.
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/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.
All figures are in Canadian dollars unless otherwise noted.
The principal methodologies are Rating Companies in the Regulated Electric, Natural Gas, and Water Utilities Industry (September 24, 2021; https://www.dbrsmorningstar.com/research/384922) and DBRS Morningstar Criteria: Commercial Paper Liquidity Support for Nonbank Issuers (March 1, 2022; https://www.dbrsmorningstar.com/research/393065), which can be found on dbrsmorningstar.com under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (May 17, 2022; https://www.dbrsmorningstar.com/research/396929).
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.
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 ratings are under regular surveillance.
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- Rating Companies in the Regulated Electric, Natural Gas, and Water Utilities Industry (Archived) / September 24, 2021
- DBRS Morningstar Criteria: Commercial Paper Liquidity Support for Nonbank Issuers (Archived) / March 9, 2021
- DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings / May 17, 2022