DBRS ends review for H2O Power

DBRS said it removed the issuer and senior secured bond ratings for H2O Power LP and Watergen Canada Holdings Inc. from under review with negative implications and confirmed their ratings at A(low). The trend is stable.

The agency said it placed the ratings under review on June 2, 2022, citing the possibility of a breach of a financial covenant under the financing documents, which would be considered an event of default.

“DBRS Morningstar notes that the project performance in 2022 turned out better than expected as hydrology and generation recovered from two low hydrology years in 2020 and 2021. The generation in 2022 was approximately 902 gigawatt hours (GWh), approximately 5% higher than the P50 forecast of 857.6 GWh, resulting in a DSCR for 2022 of 1.55x; excluding capex incurred in 2022 for transformer replacements (considered a one-time expense), the DSCR would have been approximately 1.76x,” the agency said in a press release.

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