Research Update: Fortis Inc. And Most Subsidiary Outlooks Remain Negative; Outlook On Caribbean Utilities Revised To Negative

St. John, Newfoundland-based utility holding company Fortis Inc. has executed on its deleveraging plan to strengthen the company's financial measures since 2019, including the sale of noncore assets and an equity issuance of about C$1.2 billion, with most of the proceeds used to pay down debt at the holding company level and to fund capital expenditures. However, other headwinds, including the current COVID-19 pandemic, plummeting oil prices, and the increasing likelihood of a global economic recession could weaken the company's ability to sustain the improvement in its consolidated financial measures. Our outlook on Fortis and most of its subsidiaries remains negative, reflecting the potential over the next six to 12 months for weaker consolidated financial measures should the COVID-19 pandemic

...- St. John, Newfoundland-based utility holding company Fortis Inc. has executed on its deleveraging plan to strengthen the company's financial measures since 2019, including the sale of noncore assets and an equity issuance of about C$1.2 billion, with most of the proceeds used to pay down debt at the holding company level and to fund capital expenditures. - However, other headwinds, including the current COVID-19 pandemic, plummeting oil prices, and the increasing likelihood of a global economic recession could weaken the company's ability to sustain the improvement in its consolidated financial measures. Our outlook on Fortis and most of its subsidiaries remains negative, reflecting the potential over the next six to 12 months for weaker consolidated financial measures should the COVID-19 pandemic or macroeconomic downturn persist. - We are affirming our 'A-' issuer credit rating (ICR) on Fortis and '###+' senior unsecured debt rating. - We are also affirming our '###' rating on the company's...

Research Update