Topic:"Performance Monitoring" in M11990

Positive Credit Rating Drivers Negative Credit Rating Drivers A negative credit rating action could occur if there is further political interference in the regulatory process for NSPI, or if key credit metrics weaken to a level no longer s...

AI summary A negative credit rating for NSP could result from political interference in its regulatory process or sustained cash flow-to-debt ratios below 10%. These factors are identified as key risks to maintaining current credit ratings.

Financial Information 12 mos. ended Sep. 30 For the year ended December 31 2024 2023 2022 2021 2020 2019 Cash flow/total debt (%) 10.7 9.9 9.8 12.9 12.6 14.4 Total debt in capital structure (%)1 64.5 66.3 69.9 66.3 66.6 62.4 EBIT gross int...

AI summary The table presents financial metrics for a company over multiple years, including cash flow to total debt ratios, total debt in capital structure percentages, and EBIT gross interest coverage multiples from 2019 to 2024. Data shows trends in liquidity, leverage, and interest coverage over time.

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 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.

Emera Inc. The stable outlook on Emera reflects our view that the initiatives taken by management during 2024 should enable it to sustain credit measures within our rating thresholds. Specifically, we believe the constructive base rate out...

AI summary Emera Inc.'s stable credit outlook is attributed to 2024 management initiatives, including TEC's base rate outcome, noncore asset sales, hybrid issuance, and deferred fuel cost securitization. These actions are expected to improve adjusted FFO-to-debt ratios to 11%-12% in 2025-2026, strengthening credit measures.

We could lower our rating on TEC within the next 12 months if: - We lower our rating on Emera; or - The company's stand-alone credit profile weakens, such that TEC's FFO to debt deteriorates and is consistently below 12%. Upside scenario W...

AI summary The rating on Tampa Electric Co. (TEC) may be lowered within 12 months if Emera's rating is downgraded or TEC's FFO-to-debt ratio falls below 12%. Conversely, the rating could be raised if Emera's FFO-to-debt improves to 13% sustainably. DBRS and S&P are the rating agencies involved.

Liquidity We assess Emera's liquidity as adequate because we believe its sources will cover its uses by about 1.2x over the next 12 months and meet cash outflows even if EBITDA declines 10%. We believe the company's generally predictable r...

AI summary Emera's liquidity is assessed as adequate, with 1.2x coverage of cash outflows over 12 months, resilience to EBITDA declines, and manageable debt maturities. The company's predictable regulatory framework, access to C$3.8 billion in credit facilities, and prudent risk management support this assessment.

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.

Request IR-3: - How has the transition from Canadian Dollar Offered Rate (CDOR) to Canadian Overnight Repo - Rate Average (CORRA) affected NS Power's financial position and forecasting processes, - specifically in terms of: - a) The impact...

AI summary Request IR-3 seeks information on how NS Power's transition from CDOR to CORRA has impacted its financial position, forecasting processes, risk management, and compliance with regulatory requirements.

mpact on the credit rating assigned to NSPI, which in turn could impact the company's continued access to the CP market. 1 Exhibit N-4 - NSPI Response to Board IR-4 (f-g), p. 2, lines 13-27 2 Exhibit N-5 - NSPI Response to SBA IR-1, Attach...

AI summary The document discusses NSPI's financial metrics, including debt-to-capital and FFO-to-debt ratios, and their impact on credit ratings and access to commercial paper. The SBA argues for quarterly reporting on these metrics to ensure transparency and protect ratepayers, citing risks to NSPI's operations if thresholds are not met. S&P's outlook depends on improving FFO-to-debt ratios above 12%.