N-12025 Annual Financial Statements - Redacted
9 passages
Credit Ratings On January 22, 2025, S&P Global Ratings affirmed its BBB- issuer rating and revised its outlook to stable from negative. On December 5, 2025, DBRS affirmed its BBB (high) rating and stable trend for NSPI.
AI summary S&P Global Ratings affirmed NSPI's BBB- issuer rating with a stable outlook on January 22, 2025, while DBRS confirmed its BBB (high) rating with a stable trend for NSPI on December 5, 2025. Both ratings reflect ongoing creditworthiness assessments.
NSPI has been assigned the following credit ratings by the Rating Agencies 1 : DBRS S&P Issuer BBB (high) (Stable) BBB- (Stable) Senior unsecured debt BBB (high) (Stable) BBB- (Stable) Commercial paper R-2 (high) (Stable) A-3 (Cdn) (Stable...
AI summary NSPI has received credit ratings from DBRS and S&P, indicating its creditworthiness. The ratings are not investment recommendations but indicators of the company's ability to meet financial obligations. Ratings may change over time based on future circumstances.
In February 2023, S&P affirmed its BBB- issuer rating and negative outlook for NSPI. In March 2024, S&P affirmed its BBB- issuer rating and negative outlook for NSPI. In January 2025, S&P affirmed its BBBissuer rating and revised its outlo...
AI summary S&P and DBRS have affirmed their BBB and BBB (high) ratings for NSPI in multiple years, with S&P changing its outlook from negative to stable in 2025.
DBRS DBRS' long term debt rating scale ranges from AAA to D, representing the range from highest to lowest quality of such rated securities. The "BBB" rating is the fourth highest rating category out of a total of ten categories employed b...
AI summary DBRS' credit rating scale ranges from AAA to D, with BBB and R-2 (high) indicating adequate credit quality for debt and commercial paper. The ratings suggest acceptable payment capacity but note potential vulnerability to future events.
S&P S&P's obligor's long term debt rating scale ranges from AAA to D, representing the range from highest to lowest quality of such rated securities. A rating of BBB by S&P is the fourth highest of ten major categories. According to the S&...
AI summary S&P's credit rating scales for long-term debt range from AAA to D, with BBB indicating adequate capacity but vulnerability to adverse conditions. NSPI's commercial paper holds an A-3 rating (Canadian scale), suggesting higher susceptibility to economic changes compared to higher categories.
Financial Highlights
AI summary The document provides an overview of key financial highlights, including management's discussion and analysis, capital expenditures, and various regulatory and compliance considerations relevant to Nova Scotia Power Incorporated.
Emera and its subsidiaries have been assigned the following senior unsecured debt ratings: Fitch S&P Moody's DBRS Emera (1) BBB (Stable) BBB- (Stable) Baa3 (Negative) N/A TEC (1) A (Stable) BBB+ (Stable) A3 (Negative) N/A PGS (1) A (Stable...
AI summary Emera and its subsidiaries have received senior unsecured debt ratings from Fitch, S&P, and Moody's. The ratings include BBB for Emera, A for TEC, and BBB+ for NMGC. Fitch revised its outlook on Emera, TEC, and PGS to stable from negative on May 27, 2025.
The Company's cash collateral positions consisted of the following: As at millions of dollars December 31 2025 December 31 2024 Cash collateral provided to others $ 193 $ 198 Cash collateral received from others $ 5 $ 5 Collateral is poste...
AI summary The Company's cash collateral positions show a slight decrease from 2024 to 2025, with cash collateral provided to others decreasing from $198 million to $193 million, while cash collateral received remained stable at $5 million. Collateral is posted based on the Company's credit rating and may be required under derivative agreements if a material adverse credit event occurs.
Liquidity and Capital Markets Risk Liquidity risk relates to Emera's ability to ensure sufficient funds are available to meet its financial obligations. Emera's access to capital and cost of borrowing is subject to several risk factors, in...
AI summary Emera faces liquidity and capital market risks, including reliance on capital markets for financing, sensitivity to credit ratings, and exposure from stock-based compensation. Disruptions in capital markets, interest rate changes, and downgraded credit ratings could hinder growth plans and increase borrowing costs. Equity derivatives are used to mitigate earnings volatility from stock-based compensation.
N-2Refiled Statements - NSPI - Redacted
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2025 Annual Financial Statements Attachment 2 Page 27 of 48 REDACTED (CONFIDENTIAL INFORMATION REMOVED) The Company assesses the potential for credit losses on a regular basis, and where appropriate, recognizes provisions. With respect to...
AI summary The Company manages credit risk by monitoring counterparties' creditworthiness, adjusting net liability/asset positions based on default probabilities, and securing cash deposits. Maximum credit exposure was $567 million as of December 31, 2025, with $119 million in past-due financial assets. Commodity master agreements and collateral mechanisms mitigate risks.
General Economic Risk The Company has exposure to the macro-economic conditions in Nova Scotia. Like most utilities, economic factors such as consumer income, employment and housing affect demand for electricity, and in turn the Company's...
AI summary The Company faces risks from Nova Scotia's macroeconomic conditions, including impacts on customer affordability of rate increases due to inflation and rising costs. Adverse economic shifts could lead to credit risks, policy changes, and challenges in recovering costs and regulatory assets.
Interest Rate Risk: NSPI utilizes a combination of fixed and floating rate debt financing for operations and capital expenditures, resulting in an exposure to interest rate risk. The allowed range of ROE will generally follow the direction...
AI summary NSPI uses fixed and floating rate debt, exposing it to interest rate risk. The allowed ROE range correlates with interest rates, with a regulatory lag. Debt costs are recovered from customers, and credit ratings influence interest rates. As of December 31, 2025, 75% of NSPI's debt is fixed-rate with a 17-year average term.
2025 Annual Financial Statements Attachment 3 Page 2 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) The forward-looking information is based on reasonable assumptions and is subject to risks, uncertainties and other factors that could c...
AI summary The document outlines forward-looking information and associated risks, including regulatory, economic, commodity price, credit rating, rate base growth, capital investment, and environmental factors that could affect NSPI's financial results. It emphasizes uncertainties in energy consumption, technology, climate, and market conditions.
Credit Ratings On January 22, 2025, S&P Global Ratings affirmed its BBB- issuer rating and revised its outlook to stable from negative. On December 5, 2025, DBRS affirmed its BBB (high) rating and stable trend for NSPI.
AI summary S&P Global Ratings affirmed NSPI's BBB- issuer rating with a stable outlook on January 22, 2025, while DBRS confirmed its BBB (high) rating with a stable trend for NSPI on December 5, 2025. Both ratings reflect ongoing creditworthiness assessments.
Physical Risk: Changes in climate may negatively impact the Company's operations as a result of increased frequency and intensity of weather events and related physical risks, any of which could result in a Material Adverse Effect (for mor...
AI summary Climate change poses physical risks to the Company's operations through increased weather events, potentially causing Material Adverse Effects. These risks may also raise insurance costs, impact credit ratings, and affect debt availability, as outlined in sections on liquidity and capital markets.
Liquidity and Capital Market Risk Liquidity risk relates to NSPI's ability to ensure sufficient funds are available to meet its financial obligations. NSPI's access to capital and cost of borrowing is subject to several risk factors, inclu...
AI summary NSPI faces liquidity and capital market risks, including dependency on credit ratings, market disruptions, and interest rate fluctuations. Credit rating downgrades could increase borrowing costs, while climate-related events and regulatory factors may impact financial stability. Capital access challenges could hinder operations and financing.
General Economic Risk The Company has exposure to the macro-economic conditions in Nova Scotia. Like most utilities, economic factors such as consumer income, employment and housing affect demand for electricity, and in turn the Company's...
AI summary The Company faces risks from Nova Scotia's macroeconomic conditions, including impacts on customer affordability of rate increases due to inflation and rising costs. Adverse economic shifts could lead to credit risks, policy changes, and challenges in recovering costs and regulatory assets.
Interest Rate Risk: NSPI utilizes a combination of fixed and floating rate debt financing for operations and capital expenditures, resulting in an exposure to interest rate risk. The allowed range of ROE will generally follow the direction...
AI summary NSPI uses fixed and floating rate debt, exposing it to interest rate risk. ROE adjustments follow interest rates with a lag, and credit ratings affect interest rates. Inflation may increase operating and capital costs beyond customer rate revenues.
NSPI has been assigned the following credit ratings by the Rating Agencies 1 : DBRS S&P Issuer BBB (high) (Stable) BBB- (Stable) Senior unsecured debt BBB (high) (Stable) BBB- (Stable) Commercial paper R-2 (high) (Stable) A-3 (Cdn) (Stable...
AI summary NSPI has received credit ratings from rating agencies, including BBB (high) from DBRS and BBB- from S&P for both issuer and senior unsecured debt, with similar ratings for commercial paper. The ratings are intended to reflect credit quality and are not investment recommendations.
In February 2023, S&P affirmed its BBB- issuer rating and negative outlook for NSPI. In March 2024, S&P affirmed its BBB- issuer rating and negative outlook for NSPI. In January 2025, S&P affirmed its BBBissuer rating and revised its outlo...
AI summary S&P and DBRS have affirmed their BBB- and BBB (high) ratings for NSPI in multiple years, with S&P changing its outlook from negative to stable in 2025.
DBRS DBRS' long term debt rating scale ranges from AAA to D, representing the range from highest to lowest quality of such rated securities. The "BBB" rating is the fourth highest rating category out of a total of ten categories employed b...
AI summary DBRS uses a long-term debt rating scale from AAA to D, with BBB being the fourth highest category. The R-2 (high) rating for NSPI's commercial paper is also considered adequate, indicating acceptable capacity for payment.
S&P S&P's obligor's long term debt rating scale ranges from AAA to D, representing the range from highest to lowest quality of such rated securities. A rating of BBB by S&P is the fourth highest of ten major categories. According to the S&...
AI summary S&P's long-term debt rating scale ranges from AAA to D, with BBB being the fourth highest category, indicating adequate capacity to meet financial commitments but with vulnerability to adverse economic conditions. A-3 is the third highest rating for NSPI's commercial paper, indicating higher susceptibility to adverse conditions.
Payments to Rating Agencies NSPI has made, or will make, payments in the ordinary course to the Rating Agencies in connection with the assignment of ratings on both NSPI and its securities. As the Rating Agencies did not provide any other...
AI summary NSPI makes or will make payments to Rating Agencies for assigning ratings on NSPI and its securities. No other services were provided by Rating Agencies in the past three years, so no other payments were made in 2023, 2024, and 2025.
Financial Review - [Management's Discussion & Analysis](#page-145-0) - [Forward-Looking Information](#page-146-0) - [Introduction and Strategic Overview](#page-146-0) - [Non-GAAP Financial Measures and Ratios](#page-147-0) - [Consolidated...
AI summary The document outlines the financial review section of a regulatory proceeding, covering topics such as Management's Discussion & Analysis, consolidated financial highlights, liquidity and capital resources, credit ratings, pension funding, and risk management. It includes sections on financial statements and related disclosures.
Emera and its subsidiaries have been assigned the following senior unsecured debt ratings: Fitch S&P Moody's DBRS Emera (1) BBB (Stable) BBB- (Stable) Baa3 (Negative) N/A TEC (1) A (Stable) BBB+ (Stable) A3 (Negative) N/A PGS (1) A (Stable...
AI summary Emera and its subsidiaries have received various senior unsecured debt ratings from Fitch, S&P, Moody's, and DBRS. On May 27, 2025, Fitch revised its outlook on Emera, TEC, and PGS to stable from negative, without changing the existing ratings.
Physical Risk: Changes in climate may negatively impact the Company's operations as a result of increased frequency and intensity of weather events and related physical risks, any of which could result in a Material Adverse Effect (for mor...
AI summary Climate change poses physical risks to the Company's operations through increased weather events, potentially causing Material Adverse Effects. These risks may also raise insurance costs, impact credit ratings, and affect debt availability, as outlined in sections on liquidity and capital markets.
Liquidity and Capital Markets Risk Liquidity risk relates to Emera's ability to ensure sufficient funds are available to meet its financial obligations. Emera's access to capital and cost of borrowing is subject to several risk factors, in...
AI summary Emera faces liquidity and capital markets risks, including the potential inability to access cost-effective capital, disruptions in financial markets, and changes in credit ratings. These risks could affect the company's ability to fund its growth plan and increase borrowing costs. Credit rating changes could also impact derivative instruments and the company's common share price through stock-based compensation.
General Economic Risk The Company has exposure to the macro-economic conditions in North America and in other geographic regions in which Emera operates. Like most utilities, economic factors such as consumer income, employment and housing...
AI summary The Company is exposed to macroeconomic conditions affecting demand for electricity and natural gas, which can impact its financial results. Adverse economic conditions and inflation may hinder customers' ability to afford rate increases, leading to potential credit risks, policy changes, and challenges in recovering costs.
Interest Rate Risk: Emera utilizes a combination of fixed and floating rate debt financing for operations and capital expenditures, resulting in an exposure to interest rate risk. For Emera's rate-regulated utilities, the cost of debt is a...
AI summary Emera uses a mix of fixed and floating rate debt, exposing it to interest rate risk. Regulatory ROE is influenced by interest rates, with potential impacts on project viability and share price performance, especially in rising rate environments. Credit ratings also affect interest rates.
Receivables and Allowance for Credit Losses Utility customer receivables are recorded at the invoiced amount and do not bear interest. Standard payment terms for electricity and gas sales are approximately 30 days. A late payment fee may b...
AI summary The document discusses how utility customer receivables are recorded and managed, including the recognition of allowances for credit losses based on historical experience and forecasts. Late payment fees and write-offs are also addressed.
The Company's cash collateral positions consisted of the following: As at millions of dollars December 31 2025 December 31 2024 Cash collateral provided to others $ 193 $ 198 Cash collateral received from others $ 5 $ 5 Collateral is poste...
AI summary The Company's cash collateral positions show a slight decrease in cash collateral provided to others from 2024 to 2025, while cash collateral received from others remained unchanged. Collateral is managed based on the Company's credit rating and is required under certain derivative agreements in case of adverse credit events.
Liquidity and Capital Markets Risk Liquidity risk relates to Emera's ability to ensure sufficient funds are available to meet its financial obligations. Emera's access to capital and cost of borrowing is subject to several risk factors, in...
AI summary The text discusses liquidity and capital markets risks facing Emera, including challenges related to access to capital, cost of borrowing, credit ratings, and the impact of financial market disruptions. It highlights the potential adverse effects on Emera's growth plan and the importance of credit ratings in determining financing terms and costs.
General Economic Risk The Company has exposure to the macro-economic conditions in North America and in other geographic regions in which Emera operates. Like most utilities, economic factors such as consumer income, employment and housing...
AI summary The Company faces economic risks due to macroeconomic conditions affecting consumer demand for electricity and natural gas. These risks include challenges in recovering rate increases, credit and counterparty risks, and potential impacts from regulatory and legislative changes.
N-4NSPI (NSEB) RIR 1 to 12 - Redacted
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2025 Annual and Regulated Financial Statements NSEB IR-3 Attachment 1 Page 2 of 5 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Nova Scotia Power Inc.'s Fiscal-Year 2025 Results Were Weaker Than Expected, Credit Measures Projected To Recover...
AI summary Nova Scotia Power Inc.'s 2025 fiscal-year results were weaker than expected, with credit measures projected to recover. The document includes a figure related to the issuer credit rating and stand-alone credit profile.
Downside scenario We could lower our ratings on NSPI over the next 12-24 months if: - Its financial measures deteriorate, including FFO to debt of consistently below 10%; or - We lower our rating on Emera.
AI summary The downside scenario discusses the possibility of lowering NSPI's credit ratings if its financial measures, such as FFO to debt, fall below 10% or if Emera's rating is downgraded.
Upside scenario We could raise our rating on NSPI during our outlook period if: - We raise our rating on Emera; or - The company strengthens its business risk while maintaining FFO to debt of more than 10%.
AI summary The upside scenario outlines potential conditions under which the rating of Nova Scotia Power Inc. (NSPI) could be raised during the outlook period, including an upgrade in Emera's rating or strengthening of NSPI's business risk profile while maintaining a debt-to-FFO ratio above 10%.
2025 Annual and Regulated Financial Statements NSEB IR-3 Attachment 1 Page 3 of 5 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Nova Scotia Power Inc.'s Fiscal-Year 2025 Results Were Weaker Than Expected, Credit Measures Projected To Recover
AI summary Nova Scotia Power Inc.'s fiscal-year 2025 results were weaker than expected, but credit measures are projected to recover. This information is part of a redacted document related to the 2025 Annual and Regulated Financial Statements.
Environmental factors are a negative consideration in our credit rating analysis of NSPI because it is exposed to energy transition risks through its electric generation, which it primarily derives from coal, natural gas, and oil. Relative...
AI summary Environmental factors negatively impact NSPI's credit rating due to its reliance on coal, natural gas, and oil for electricity generation. This exposure to fossil fuels may lead to stricter environmental regulations, although NSPI's renewable-focused growth strategy, particularly in hydro and wind, somewhat mitigates this risk.
Nova Scotia Power Inc.'s Fiscal-Year 2025 Results Were Weaker Than Expected, Credit Measures Projected To Recover Rating Component Scores Foreign currency issuer credit rating BBB-/Stable/ Local currency issuer credit rating BBB-/Stable/ B...
AI summary Nova Scotia Power Inc.'s fiscal-year 2025 results were weaker than expected, though credit measures are projected to recover. The credit ratings remain stable at BBB- for both foreign and local currency issuer credit ratings. The financial risk is categorized as aggressive, and the stand-alone credit profile is rated bb+.
2025 Annual and Regulated Financial Statements NSEB IR-3 Attachment 1 Page 5 of 5 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Nova Scotia Power Inc.'s Fiscal-Year 2025 Results Were Weaker Than Expected, Credit Measures Projected To Recover...
AI summary Nova Scotia Power Inc.'s 2025 fiscal-year results were weaker than expected, but credit measures are projected to recover. This information is part of a confidential document from the 2025 Annual and Regulated Financial Statements.
Ravikanth Rai Associate Managing Director Corporate Ratings +1 416 597-7388 [[email protected]](mailto:[email protected]) Credit Ratings Obligation Credit Rating Credit Rating Action Trend Issuer Rating BBB (high) C...
AI summary The credit rating for Nova Scotia Power Inc. remains BBB (high) with a stable outlook. Positive factors include potential improvements in the regulatory framework and financial risk profile, while negative factors include political interference and weakening credit metrics such as cash flow-to-debt below 10%.
Financial Outlook We expect NSPI's key credit metrics will remain supportive of the current credit ratings. The Company's key credit metrics recovered during 2024, following weakness in 2023, and continued to remain relatively stable durin...
AI summary NSPI's credit metrics are expected to remain stable, supported by debt reduction and fuel cost recoveries, despite high capital expenditures. A securitization deal in 2026 is anticipated to provide funding and reduce debt. NSPI's parent company, Emera, has historically supported the company with flexible dividend policies.
Additional Considerations The credit rating assessment includes no further negative or positive adjustments resulting from additional considerations. Further details on the IA framework can be found below: Page 6 of 15 Nova Scotia Power In...
AI summary The credit rating assessment does not include any additional negative or positive adjustments. Further details on the IA framework are provided on page 6 of the document.
Industry Regulated Utility Description Assessment Weight Regulation BBBH 33.3% Diversification (Products/Markets) AL 25.0% Franchise and Customer Mix AL 25.0% (1) Comprehensive BRA Operating Efficiency (Inputs and Costs) AL 16.7% BRA AL/BB...
AI summary The text presents a structured assessment of a regulated utility, including ratings for regulation, diversification, franchise and customer mix, operating efficiency, and financial considerations such as cash flow-to-debt and debt-to-capital ratios. It also includes an Intrinsic Assessment (IA) and an Issuer Rating (BBB high), with considerations for ESG factors.
Social There were no Social factors that had a relevant or significant effect on the credit analysis. As a regulated utility, NSPI provides an essential service to its customers. NSPI is also committed to the safety of its employees and cu...
AI summary The document discusses the social factors related to NSPI's credit analysis, highlighting its essential service to customers, operational safety, and performance metrics. While NSPI improved its SAIFI score in 2024, its SAIDI remained above the threshold. A cybersecurity incident in April 2025 did not impact operations, and the company provided free credit monitoring to customers.
Governance There were no Governance factors that had a relevant or significant effect on the credit analysis. NSPI's board of directors includes nine members, seven of whom are independent directors. The board has oversight over climate-re...
AI summary The governance structure of NSPI was assessed, noting that seven of the nine board members are independent and that the board oversees climate-related issues. ESG factors are considered in the credit analysis framework as outlined by Morningstar DBRS.
Credit Rating History Current 2024 2023 2022 2021 2020 Issuer Rating BBB (high) BBB (high) BBB (high) BBB (high) A (low) A (low) Unsecured BBB (high) BBB (high) BBB (high) BBB (high) A (low) A (low) Debentures & MTN Commercial Paper R-2 (h...
AI summary The document presents a table showing the credit rating history of Nova Scotia Power Inc. (NSPI) from 2020 to the current year, highlighting the issuer rating and unsecured ratings over time. It also references a previous credit rating action.
Previous Credit Rating Report • [Nova Scotia Power Inc.: Rating Report,](https://dbrs.morningstar.com/research/445873/nova-scotia-power-inc-rating-report) January 15, 2025. Notes: All figures are in Canadian dollars unless otherwise noted....
AI summary A credit rating report for Nova Scotia Power Inc. from January 15, 2025, is referenced, with notes on the definition of issuer ratings and their application to senior unsecured obligations. The report is part of a larger document dated January 27, 2026.
NON-CONFIDENTIAL 1 Request IR-5: 2 3 Attachment 2, Note 9 – Receivables: 4 5 (a) The accounts receivable balance increased to $557 million from $417 million in 2024. 6 Please explain the principal factors contributing to this increase. Add...
AI summary The document requests an explanation for the increase in accounts receivable from $417 million to $557 million between 2024 and the current period, including factors such as higher customer bills, growth in customer accounts, customer arrears, unbilled revenue accruals, and impacts from a cybersecurity incident. NS Power has not prepared an analysis by the requested categories but notes the suspension of interest on late payments.
NON-CONFIDENTIAL - 1 Based on the assessment at Q4 2025, NS Power recorded an additional provision to reflect the - 2 increased collectability risk associated with higher receivable balances and aging. The resulting - 3 allowance for credi...
AI summary NS Power increased its allowance for credit loss to approximately $6.6 million at December 31, 2025, due to higher receivable balances and aging. A table provides a breakdown of past-due accounts receivable by customer class and aging category.