OPG's long-term corporate credit rating increased to A-
TORONTO, ONTARIO - Ontario Power Generation Inc. (OPG) announced that Standard & Poor's (S&P) has raised their long-term corporate credit rating to "A-" from "BBB+".
At the same time, S&P affirmed the "A-2" global scale and "A-1(Low)" Canada scale commercial paper rating on OPG. The outlook is stable.
In its announcement, S&P stated that the upgrade in OPG's long-term rating reflects a "closer relationship between the company and its higher-rated owner, the Province of Ontario (AA/Stable/A-1+); and a slightly stronger stand-alone credit profile, given regulatory support and an expected improvement in cash flow metrics".
In addition, it was noted that regulatory oversight by the Ontario Energy Board with respect to establishing regulated prices for OPG's baseload nuclear and baseload hydroelectric assets, a diverse generation portfolio, and cost-competitive position support OPG's strong business risk profile.
In September 2005, S&P affirmed OPG's long-term corporate credit rating at BBB+ and revised its outlook to "positive" from "developing".
Related News
Severe heat: 5 electricity blackout risks facing the entire U.S., not just Texas
DALLAS - Texas has a unique state-run power grid, but its issues with extreme weather, and balancing natural gas and wind, hold lessons for an entire U.S. at risk for power outages from climate change.
Grid operator the Electric Reliability Council of Texas, or ERCOT, called on consumers to voluntarily reduce power use on Monday when dangerous heat gripped America’s second-most populous state.
The action paid off as the Texas grid avoided blackouts — and a repeat of its winter crisis — despite record or near-record temperatures that depleted electric supplies and risked lost power to more than 26 million customers. ERCOT…
