...Fortis TCI Ltd. (FTCI) is exposed to rising physical risk within its service territory. FTCI is a small integrated electric utility that operates four vertically integrated plants that serve about 98% of the Turks and Caicos Islands with no geographic diversity and elevated exposure to higher physical risks, including storms and hurricanes. Our stand-alone credit profile assessment reflects our expectation for a gradual increase in the company's business risk due to the escalating pace of climate change, which could increase the frequency and severity of physical events, particularly on relatively small and isolated islands. We are also continuing to evaluate the recent wildfires in Hawaii and their credit implications, which could lead us to reassess the physical risks associated with these relatively small islands exposed to physical events. FTCI benefits from being part of the Fortis group. FTCI is a subsidiary of Fortis Inc., a large holding utility company. Its parent shares best practices,...
