This confirmation reflects CPC's relatively stable long-term business risk and financial profiles. DBRS Morningstar also confirmed the Company's Preferred Shares rating at Pfd-3 (low) with a Stable trend. The ratings reflect CPC's (1) highly contracted and hedged capacity, (2) high plant availability, and (3) reasonable financial profile with good liquidity. The strengths are offset by (1)
The Company performed well operationally in 2019 with 94% plant availability. CPC also continues to diversify out of the
The Company continues to have significant exposure to the
DBRS Morningstar notes that the recent significant decrease in oil prices due to the Coronavirus Disease (COVID-19) pandemic is expected to result in lower demand for electricity from industrial customers in
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.
Notes:
All figures are in Canadian dollars unless otherwise noted.
The principal methodologies are Rating Companies in the Independent Power Producer Industry, DBRS Morningstar Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers, DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships, and DBRS Morningstar Criteria: Guarantees and Other Forms of Support, which can be found on dbrsmorningstar.com under Methodologies & Criteria.
For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrsmorningstar.com.
The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.
Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.
DBRS Morningstar will publish a full report shortly that will provide additional analytical detail on this rating action. If you are interested in receiving this report, contact us at info@dbrs.com.
For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.
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Ratings
Date Issued Debt Rated Action Rating Trend Issued
i
US =
CA = Canada Issued, NRSRO
EU = EU Issued, NRSRO
E = EU endorsed
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-Participating
07-Apr-20 Issuer Rating Confirmed BBB (low) Stb CA
07-Apr-20 Senior Unsecured Debt Confirmed BBB (low) Stb CA
07-Apr-20 Preferred Shares Confirmed Pfd-3 (low) Stb CA
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