Entegrus Powerlines Inc.

The stable outlook reflects S&P Global Ratings' assessment of EPI's predictable and stable cash flows from the company's low-risk, regulated distribution business. In our base case scenario, we expect adjusted FFO to debt in the 15%-16% range. The outlook also reflects our expectation that the company will continue to focus on its core regulated business during our two-year outlook horizon. Although not expected, we would downgrade the company if EPI sustained deterioration of its forecast adjusted FFO to debt of approaching 13%. This could happen following a material, adverse regulatory ruling, but is more likely to be the result of significantly higher leverage. We could raise the rating if we forecast that EPI's adjusted FFO to debt will improve to

...We expect Entegrus Powerlines Inc. (EPI) to effectively manage regulatory risk, supporting our assessment of its excellent business risk profile. This reflects the company's essential electricity distribution operations under a credit-supportive framework in Ontario, Canada. We expect EPI's forecast credit metrics to remain at the lower end of the range for the significant financial risk profile category. On a forward-looking basis, we forecast funds from operations (FFO) to debt to average in the range of 15%-16%, evaluated using our low-volatility financial benchmark tables....

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