Fortis Inc. And Most Subsidiaries Outlooks Revised To Stable On Improved Financial Metrics; Ratings Affirmed

The COVID-19 pandemic has had a modest effect on St. John, Newfoundland-based utility holding company Fortis Inc.'s operations and financial performance with achieved funds from operation (FFO) to debt of close to 11% for fiscal year 2020, consistent with our expectation. With the roll out of the vaccine and our expectation of gradual recovery to the global economy, we expect Fortis' financial measures to stabilize and be able to maintain FFO to debt of about 10.5%-11% consistently. As a result, we affirmed our 'A-' issuer credit rating (ICR) on Fortis and 'BBB+' senior unsecured debt rating. We revised the rating outlook on Fortis to stable from negative and affirmed our 'BBB' rating on the company's preferred shares on the global

...April 1, 2021 - The COVID-19 pandemic has had a modest effect on St. John, Newfoundland-based utility holding company Fortis Inc.'s operations and financial performance with achieved funds from operation (FFO) to debt of close to 11% for fiscal year 2020, consistent with our expectation. With the roll out of the vaccine and our expectation of gradual recovery to the global economy, we expect Fortis' financial measures to stabilize and be able to maintain FFO to debt of about 10.5%-11% consistently. - As a result, we affirmed our 'A-' issuer credit rating (ICR) on Fortis and '###+' senior unsecured debt rating. We revised the rating outlook on Fortis to stable from negative and affirmed our '###' rating on the company's preferred shares on the global scale and 'P-2' on the Canada National Preferred Share scale. - At the same time, we revised the rating outlooks on Tucson Electric Power Co. (TEP), FortisAlberta Inc. (FAB), and ITC Holding Corp. (ITC) and its subsidiaries to stable from negative...

Ratings Action