DBRS stabilizes Hydro Ottawa trend

DBRS said it revised the trend for Hydro Ottawa Holding Inc. to negative from stable and affirmed its A(low)issuer and senior unsecured debt ratings.

“The negative trend reflects DBRS Morningstar's concern that Hydro Ottawa's current and projected growth from unregulated businesses will continue to outpace growth from its regulated business, which could further deteriorate its business risk profile,” the agency said in a press release.

“Hydro Ottawa’s financial metrics remained stable in 2022 and weakened modestly in the last 12 months ended June 30, 2023, reflecting higher borrowing costs and weaker performance of the generation facilities. DBRS Morningstar notes Hydro Ottawa has relatively weaker consolidated financial metrics compared with its utility peers, reflecting higher levels of leverage associated with the electricity generating assets,” DBRS said.

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