Fortis Inc. Outlook To Negative On Proposed Acquisition Of ITC Holdings Corp.; CCR Affirmed At 'A-' - S&P Global Ratings’ Credit Research

Fortis Inc. Outlook To Negative On Proposed Acquisition Of ITC Holdings Corp.; CCR Affirmed At 'A-'

Fortis Inc. Outlook To Negative On Proposed Acquisition Of ITC Holdings Corp.; CCR Affirmed At 'A-' - S&P Global Ratings’ Credit Research
Fortis Inc. Outlook To Negative On Proposed Acquisition Of ITC Holdings Corp.; CCR Affirmed At 'A-'
Published Feb 09, 2016
4 pages (1638 words) — Published Feb 09, 2016
Price US$ 150.00  |  Buy this Report Now

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Abstract:

On Feb. 9, 2016, Fortis Inc. announced the US$11.3 billion proposed acquisition of ITC Holdings Corp. (ITC), a U.S.-based electricity transmission operator. We are revising our outlook on St. John's, Nfld.-based holding company Fortis Inc. and its subsidiaries FortisAlberta Inc., Maritime Electric Co. Ltd., and Caribbean Utilities Co. Ltd. to negative from stable. We are also affirming our long-term corporate credit ratings on Fortis and its subsidiaries. In addition, we are downgrading Fortis' senior unsecured debentures to 'BBB+' from 'A-'. We are revising our competitive position score to strong from excellent. The negative outlook reflects the execution risks associated with the transaction including selling up to 19.9% of ITC to one or more infrastructure-focused minority investors. The negative outlook also

  
Brief Excerpt:

...+ On Feb. 9, 2016, Fortis Inc. announced the US$11.3 billion proposed acquisition of ITC Holdings Corp. (ITC), a U.S.-based electricity transmission operator. + We are revising our outlook on St. John's, Nfld.-based holding company Fortis Inc. and its subsidiaries FortisAlberta Inc., Maritime Electric Co. Ltd., and Caribbean Utilities Co. Ltd. to negative from stable. + We are also affirming our long-term corporate credit ratings on Fortis and its subsidiaries. + In addition, we are downgrading Fortis' senior unsecured debentures to '###+' from 'A-'. + We are revising our competitive position score to strong from excellent. + The negative outlook reflects the execution risks associated with the transaction including selling up to 19.9% of ITC to one or more infrastructure-focused minority investors. + The negative outlook also reflects the limited cushion in the credit metrics for any post-merger integration or operational issues. TORONTO (Standard & Poor's) Feb. 9, 2016--Standard & Poor's...

  
Report Type:

Ratings Action

Ticker
FTS@CN
Issuer
Fortis Inc.
GICS
Electric Utilities (55101010)
Sector
Global Issuers
Country
Canada
Region
Europe, Middle East, Africa
Format:
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MLA:
S&P Global Ratings’ Credit Research. "Fortis Inc. Outlook To Negative On Proposed Acquisition Of ITC Holdings Corp.; CCR Affirmed At 'A-'" Feb 09, 2016. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Fortis-Inc-Outlook-To-Negative-On-Proposed-Acquisition-Of-ITC-Holdings-Corp-CCR-Affirmed-At-A-1575759>
  
APA:
S&P Global Ratings’ Credit Research. (). Fortis Inc. Outlook To Negative On Proposed Acquisition Of ITC Holdings Corp.; CCR Affirmed At 'A-' Feb 09, 2016. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Fortis-Inc-Outlook-To-Negative-On-Proposed-Acquisition-Of-ITC-Holdings-Corp-CCR-Affirmed-At-A-1575759>
  
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