Topic:"Credit Ratings" in M11990

WACC and AFUDC Rate Application CONFIDENTIAL (ATTACHMENT ONLY) 1 3.0 DEBT, INTEREST AND EQUITY 2 3 NS Power's funding requirements are financed through shareholder equity, preferred shares, 4 internally generated cash flows, short-term cre...

AI summary NS Power uses a mix of debt and equity, relying on Commercial Paper for low-cost financing. Their current credit rating (R-2) is below the required R-1, but they received exemptive relief in 2023. They aim to maintain access to Commercial Paper and use CORRA as the new benchmark after CDOR's discontinuation.

1 analysts from a greater number of banks (11 vs. 5) which should increase the robustness of 3 In FOR-11, please explain the increase in a) "Other financing charges & adjustments" 4 and b) amortization of deferred financing charges. 5 6 Re...

AI summary The document discusses an increase in 'Other financing charges and adjustments' due to lower interest income from NSPI's equipment financing program, and confirms that NSPI's credit ratings have been affirmed with no material changes to access to capital or borrowing costs since last year.

WACC and AFUDC Rates for 2025 Application (NSUARB M11990) NSPI Responses to NSUARB Information Requests 1 Request IR-3: 7 process to calculate NS Power's credit spread as noted in response to (a) above remains 8 the same. However, because...

AI summary NSP explains that its credit spread has decreased compared to the Term CORRA benchmark rate but remains consistent with 2024 levels when compared to treasury bills. A credit downgrade in 2023 led to higher borrowing costs due to a different investor base, and NSP assumes its current credit rating remains stable with no migration expected.

NON-CONFIDENTIAL Request IR-1: Refer to Exhibit N-1, NS Power's Application in M11990, p. 6, lines 18-21, and p. 8 at line 22, both quoted below and answer the questions that follow: "The predominant rating used by Commercial Paper investo...

AI summary NS Power's credit ratings (R-2 by DBRS, BBB by S&P) are below the Commercial Paper market's required R-1 threshold. The company obtained exemptive relief in 2023. The proceeding requests recent credit reports from DBRS and S&P, with NS Power referring to attachments for updated outlooks.

[[email protected]](mailto:[email protected]) Credit Ratings Obligation Rating Rating Action Trend Issuer Rating BBB (high) Confirmed Stable Unsecured Debentures & Medium-Term Notes BBB (high) Confirmed Stable Commercial...

AI summary The credit ratings for Nova Scotia Power remain stable, with a BBB (high) rating for issuer ratings and unsecured debentures. A positive rating action could occur if the regulatory process for the next GRA is free of interference, the NSIESO is established, and key credit metrics align with an 'A' rating category.

Environmental, Social, and Governance Checklist ESG Factor ESG Credit Consideration Applicable to the Credit Analysis: Y/N Extent of the Effect on the ESG Factor on the Credit Analysis: Relevant (R) or Significant (S) Bribery, Corruption,...

AI summary The ESG checklist for the credit analysis of Nova Scotia Power indicates that bribery, corruption, political risks, and corporate governance factors do not pose a financial or reputational risk to the issuer, and are not considered relevant or significant in the credit analysis.

Rating History Current 2023 2022 2021 2020 2019 Issuer Rating BBB (high) BBB (high) BBB (high) A (low) A (low) A (low) Unsecured Debentures & Medium-Term Notes BBB (high) BBB (high) BBB (high) A (low) A (low) A (low) Commercial Paper R-2 (...

AI summary The document presents the rating history of Nova Scotia Power, showing changes in credit ratings over the years. It includes ratings for the issuer, unsecured debentures, and commercial paper from 2019 to the current date.

- NSPI has an $800 million credit facility maturing in December 2029. - The credit facility is used to backstop the Company's $800 million commercial paper (CP) program and to partially fund its working capital and capex requirements. Avai...

AI summary NSPI has an $800 million credit facility maturing in December 2029, used to backstop its commercial paper program and support working capital and capital expenditures. The facility is subject to a debt-to-capital ratio covenant, which NSPI is currently complying with.

to obtaining, collecting, compiling, analyzing, interpreting, communicating, publishing or delivering any such information. IN ANY EVENT, TO THE EXTENT PERMITTED BY LAW, THE AGGREGATE LIABILITY OF MORNINGSTAR DBRS AND THE MORNINGSTAR DBRS...

AI summary Morningstar DBRS disclaims liability beyond the greater of $100 or fees paid by users over the prior 12 months. It explicitly states it does not act as a fiduciary or investment advisor, and its credit ratings are opinions, not investment advice. Ratings address only credit risk, not liquidity or market volatility, and are not intended for retail investors.

Downside scenario We could lower our ratings on NSPI over the next 12 months if: - We downgrade Emera; or - NSPI's group status further weakens and its stand-alone financial measures consistently decline below our base case such that its F...

AI summary DBRS Morningstar may downgrade Nova Scotia Power Inc.'s (NSPI) credit ratings within 12 months if Emera is downgraded or NSPI's standalone financial metrics, particularly FFO to debt, consistently fall below 10%.

Upside scenario We could affirm our ratings on NSPI and revise our outlook to stable over the next 12 months if we affirm our ratings on Emera and revise our outlook to stable. Alternatively, we could revise our outlook on NSPI to stable i...

AI summary DBRS may affirm NSPI's ratings and revise its outlook to stable if Emera's ratings are affirmed and its outlook is stable. Alternatively, NSPI's outlook could be revised to stable if its stand-alone FFO to debt consistently exceeds 12% without increased business risk.

Rating Component Scores Foreign currency issuer credit rating BBB-/Negative/ Local currency issuer credit rating BBB-/Negative/ Business risk Strong Country risk Very Low Industry risk Very Low Competitive position Satisfactory Financial r...

AI summary This section presents the credit rating component scores for Nova Scotia Power, including issuer credit ratings, business and country risks, financial risks, and other factors impacting the credit profile. The ratings indicate a strong business risk, very low country and industry risks, and an aggressive financial risk profile.

Nova Scotia Power Inc. Issuer Credit Rating BBB-/Negative/ Commercial Paper Canada National Scale Commercial Paper A-3(Cdn) Senior Unsecured BBB- Issuer Credit Ratings History 21-Nov-2022 BBB-/Negative/ 24-Oct-2022 BBB+/Negative/ 24-Mar-20...

AI summary Nova Scotia Power Inc. (NSP) has a BBB-/Negative/ issuer credit rating from DBRS Morningstar and S&P Global, with senior unsecured commercial paper rated A-3(Cdn). The document outlines rating history, including a BBB+/Negative/ rating from October 2022 and a BBB+/Stable/ rating from March 2020.

Tampa Electric Co. Issuer Credit Rating BBB+/Negative/A-2 Commercial Paper Local Currency A-2 Senior Unsecured BBB+ TECO Energy Inc. Issuer Credit Rating BBB/Negative/NR Teco Finance Inc. Issuer Credit Rating BBB/Negative/NR \ Unless other...

AI summary The document presents credit ratings for Tampa Electric Co. (BBB+/Negative/A-2) and TECO Energy Inc. (BBB/Negative/NR), along with S&P Global Ratings' methodology for global and national scale ratings. Nova Scotia Power Inc. is mentioned in a copyright notice by S&P Global.

Rating Action Overview - Emera Inc. executed on several credit-supportive initiatives during 2024 to strengthen its balance sheet following recent years of operational underperformance. - Specifically, we believe proceeds from non-core ass...

AI summary Emera Inc. improved its credit profile through deleveraging initiatives, leading DBRS to upgrade its outlook to stable and affirm ratings. Key actions included asset sales, fuel cost securitization, and hybrid issuance, with FFO-to-debt projected at 11%-12% through 2026. Ratings on subsidiaries, including Nova Scotia Power Inc. (NSPI) and Tampa Electric Co. (TEC), were affirmed.

iversity. Partially offsetting these factors are the company's exposure to physical risks such as storms and hurricanes and that it has some commodity risk exposure through its unregulated operations. We affirmed our ICR on TEC at 'BBB+' b...

AI summary The credit rating for Tampa Electric Co. (TEC) remains 'BBB+' due to insulation measures, but its Senior Credit Assessment (SACP) was downgraded to 'a-' from 'a' by DBRS. This follows increased capital spending and lower FFO-to-debt ratios compared to 2018-2022, reducing confidence in financial recovery. Business risk is viewed as middle-range, leading to a neutral CRA.

Environmental, Social, And Governance Environmental factors are a negative consideration in our credit rating analysis of Emera Inc. reflecting energy transition risks through its operations in electric generation that is primarily coal an...

AI summary Environmental factors negatively impact Emera Inc.'s credit rating due to its reliance on coal and natural gas for electricity generation. However, the company has reduced coal-based generation by 77% since 2005 and plans to invest $3.5B over five years in renewable energy, including solar and battery storage. Social and governance factors align with industry peers.

Analytical conclusions - We rate the company's senior unsecured debt one notch below the issuer credit rating, reflecting structural subordination of the debt, meaning priority obligations at Emera's operating subsidiaries makes up about 6...

AI summary The document discusses credit ratings for Emera Inc. and its subsidiaries, noting that senior unsecured debt is rated one notch below the issuer credit rating due to structural subordination, preferred stock and junior subordinated notes are two notches below, and preferred stocks are rated P-3 on the Canada National Scale. The outlook is revised to stable from negative due to improving credit strength, with ratings affirmed.

Related Research - Industry Credit Outlook 2025: North America Regulated Utilities, Jan. 14, 2025 - Maritime Link Financing Trust's C$500 Million Senior Unsecured Bonds Due 2052 Rated 'AAA', Outlook Stable, Dec. 12, 2024 - Emera Inc.'s Ann...

AI summary The document lists recent credit-related research, including bond ratings, credit outlooks, and financial updates for utilities and energy companies. Key entries involve Emera Inc., Maritime Link Financing Trust, and EUSHI Finance Inc., with ratings from DBRS Morningstar and S&P, focusing on credit quality, financial performance, and outlook stability.

Ratings List Ratings list Ratings Affirmed; Outlook Action To From Emera Inc. EUSHI Finance Inc. TECO Energy Inc. Teco Finance Inc. Issuer Credit Rating BBB/Stable/ BBB/Negative/ Nova Scotia Power Inc. Issuer Credit Rating BBB-/Stable/ BBB...

AI summary This document outlines credit ratings affirmations and outlook changes for several companies, including Nova Scotia Power Inc. and Emera Inc. The outlook for Emera Inc. and its subsidiaries has been revised to stable from negative due to improving credit strength.

ing, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages. Credit-related and other analyses, inc...

AI summary The text outlines disclaimers by Standard & Poor's (S&P) regarding the use of credit-related analyses, ratings, and opinions. It emphasizes that such content represents opinions, not facts, and explicitly disclaims liability for damages. S&P reserves the right to assign, withdraw, or suspend acknowledgments of ratings across jurisdictions without obligation to update the content.

20 NS Power Response: 21 - 22 NS Power agrees maintenance and improvement of the Company's credit rating is imperative and 23 continued access to commercial paper markets is important for both the Company and Customers - 24 due to the sign...

AI summary NS Power emphasizes the importance of maintaining its credit rating and access to commercial paper markets for cost savings. The company provides quarterly MD&A reports that include compliance with financial covenants, and believes annual FFO to debt calculations are sufficient for credit rating agencies. NS Power states that no additional information is needed for the Board beyond what is already available.

1 M11990 2 3 NOVA SCOTIA UTILITY AND REVIEW BOARD 4 5 IN THE MATTER OF: The Public Utilities Act, R.S.N.S. 1989, c.380, as amended 6 7 - and - 8 9 IN THE MATTER OF: AN APPLICATION by NOVA SCOTIA POWER 10 INCORPORATED (NS Power) for Approva...

AI summary The document outlines an information request (IR-1) from the Nova Scotia Small Business Advocate (NS SBA) to Nova Scotia Power (NS Power) regarding its Commercial Paper rating and exemptive relief. NS Power's current rating is R-2 (high), below the required R-1 (low) for participation in the Commercial Paper market, but it received an exemptive relief in 2023.

"NS Power's debt is currently rated BBB (high) by DBRS and BBB- by S&P Global (S&P)." Exhibit N-1, p. 8 at line 22. a) Please provide electronic copies of the most recent credit rating reports issued by DBRS and S&P Global (S&P) consistent...

AI summary The text includes requests for credit rating reports from DBRS and S&P Global, inquiries about the methodology used for short-term interest rate forecasts, and a request for spreadsheet data showing how NS Power's forecast methodology has been updated to reflect the Term CORRA benchmark reference rate.