Fortis Inc.

Low-risk and regulated assets, with limited commodity price and volume risks Diversified portfolio of regulated utilities operating as monopoly service providers Minimal unregulated operations Stable regulated cash flow Highly leveraged and limited cushion in credit metrics Downward pressure on credit metrics with large capital programs over the next several years The stable outlook reflects S&P Global Ratings' view of Fortis Inc.'s stable and predictable cash flow, underpinned by the company's regulated operations with generally supportive regulatory frameworks. During our two-year outlook period, we expect Fortis to focus on its regulated businesses. In addition, we expect the company will focus on measured organic growth opportunities rather than growth via acquisition, leading to continued strengthening in credit metrics. Although credit metrics were

...Outlook: Stable The stable outlook reflects S&P Global Ratings' view of Fortis Inc.'s stable and predictable cash flow, underpinned by the company's regulated operations with generally supportive regulatory frameworks. During our two-year outlook period, we expect Fortis to focus on its regulated businesses. In addition, we expect the company will focus on measured organic growth opportunities rather than growth via acquisition, leading to continued strengthening in credit metrics. Although credit metrics were weak in 2016 due to the timing of the acquisition's closing, we expect these to improve during our outlook period, with adjusted funds from operations (AFFO)-to-debt at 10.5%-11.0%....

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