Bulletin: Fortis Inc. 's Waneta Asset Sale Is In Line With Plans To Partly Fund Its Elevated CAPEX With Non-Core Asset Sales

TORONTO (S&P Global Ratings) Jan. 29, 2019--Fortis Inc. (A-/Negative/--) announced that it has entered into a definitive agreement with Columbia Power Corp. (not rated), and Columbia Basin Trust (not rated), both Crown corporations, wholly owned and controlled by the Province of British Columbia, to sell its 51% interest in the Waneta Expansion Hydroelectric project for about C$1 billion. The asset sale is in line with S&P Global Ratings' expectation of the utility holding company's plan to partially fund its elevated capital spending by divesting non-core assets. We expect the company's adjusted funds from operations to debt will remain weak averaging at about 9.5%-10% for the 2018-2019 period.

...TORONTO (S&P Global Ratings) Jan. 29, 2019--Fortis Inc. (A-/Negative/--) announced that it has entered into a definitive agreement with Columbia Power Corp. (not rated), and Columbia Basin Trust (not rated), both Crown corporations, wholly owned and controlled by the Province of British Columbia, to sell its 51% interest in the Waneta Expansion Hydroelectric project for about C$1 billion. The asset sale is in line with S&P Global Ratings' expectation of the utility holding company's plan to partially fund its elevated capital spending by divesting non-core assets. We expect the company's adjusted funds from operations to debt will remain weak averaging at about 9.5%-10% for the 2018-2019 period. This report does not constitute a rating action....

Bulletin