Fitch rates Hydro-Quebec's notes AA-

Fitch Ratings said it assigned Hydro-Quebec's C$500 million 5% senior unsecured JN debentures due 2050 an AA- rating. This is in addition to C$3 billion currently outstanding. Fitch also affirmed its long-term issuer default AA- rating, short-term issuer default F1+ rating, unsecured debentures and medium-term notes AA- rating and commercial paper F1+ rating.

The outlook is stable.

The ratings are driven by an unconditional and irrevocable guarantee by the provincial government of Quebec, whose rating was recently affirmed at AA-, the agency said. Hydro-Quebec is an integrated utility with largely very low-cost resources, has a history of stable financial performance and has historically maintained solid financial metrics. However, Fitch said the company is currently in the midst of a substantial capital program, with associated construction risks.

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