S&P: Emera view now negative

Standard & Poor's said it revised its outlook on Emera Inc. to negative from stable and affirmed its ratings, including its BBB+ long-term corporate credit rating, on the company.

"The outlook revision reflects our view that Emera's credit metrics could weaken in the near-to-medium term," said S&P credit analyst Nicole Martin in a news release.

A strategic motivation for the company's capital investment plan is to address the movement from carbon-based electricity to noncarbon-based electricity. This movement is embodied in the Nova Scotia government's targets for renewable energy requirements of 25% by 2015 and 40% by 2020.

"While we believe that these investments are consistent with Emera's focused strategy and the broader provincial initiative, we expect that they will require a meaningful capital expenditure program, because of energy policies at both the federal and provincial levels. This will likely drive the need for numerous rate increases that we believe heightens regulatory risk in the Nova Scotia market," Martin added.

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