S&P: Hydro One to negative

S&P said it revised the outlook on Hydro One Ltd. and subsidiary Hydro One Inc. to negative from stable.

The agency also said it affirmed the companies' long-term corporate credit ratings at A.

The outlook revision follows Hydro One's proposed acquisition of Avista Corp., S&P said.

Historically, the company's focus on Ontario provided the company with incremental business strength based on a favorable market position, regulation and operational history, the agency said.

With the Avista acquisition, S&P said it believes Hydro One's business risk has eroded slightly.

The additional leverage that the transaction introduces also eroded Hydro One's credit metrics and financial risk, the agency said.

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