DBRS confirms Newfoundland Power

DBRS said it confirmed the ratings of the first mortgage bonds and preferred shares of Newfoundland Power Inc. at A and Pfd-2, respectively.

The trend remains stable.

The confirmations reflect Newfoundland Power's low business risk stemming from the regulated nature of its operations, strong balance sheet and consistent operating results, the agency said.

Despite a low regulated return on rate base, the company continues to benefit from a favorable deemed equity ratio, a weather normalization reserve account and pension expense variance deferral account, the agency noted.

The company has a strong parent organization through Fortis Inc. (A (low)/stable) but the company is largely rated on a standalone basis, DBRS said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.