Fitch affirms Hydro-Quebec

Fitch Ratings said it affirmed Hydro-Quebec's long-term issuer default rating at AA-, short-term issuer default rating at F1+, $38.7 billion unsecured debentures and medium-term notes at AA- and commercial paper rating at F1+.

The ratings take into account the recent increased commercial paper authorization to $3.5 billion from $2.25 billion, Fitch said.

The outlook is stable.

The ratings are driven by an unconditional guarantee provided by the provincial government of Quebec, Fitch said.

The company's commercial paper program also is supported by $2 billion in dedicated bank lines, the agency said.

While this is not sufficient liquidity to cover the company's increased commercial paper program, the added exposure is sufficiently offset by the provincial guarantee, the agency said.

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