Fortis Inc.

Overview Key strengths Key risks Low-risk utility operations across U.S., Canada, and the Caribbean. Large capital spending program over our forecast period. Large scale with geographic and regulatory diversity. Negative discretionary cash flows over our forecast period indicate external funding needs. Fortis and its subsidiaries have a consistent track record of service reliability. Effective regulatory risk management. Potential changes in incentive return on equity (ROE) for its U.S. subsidiary ITC Holdings Corp business. Managing energy transition risk at subsidiary Tucson Electric Power Co (TEP). These include funding its large capital spending programs in a credit-supportive manner, maintaining its effective regulatory risk management across its many jurisdictions, and managing energy transition risk at subsidiary TEP. Our base case assumes that the

...We expect Fortis Inc to manage through three key challenges for 2023. These include funding its large capital spending programs in a credit-supportive manner, maintaining its effective regulatory risk management across its many jurisdictions, and managing energy transition risk at subsidiary TEP. Our base case assumes that the company primarily funds its capital spending through cash from operations, debt issued at the regulated utilities, and its dividend reinvestment plan. In addition, in 2023, we expect the company to maintain its effective regulatory risk management across multiple jurisdictions. Regarding its U.S. regulated...

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