Research Update: Fortis TCI Ltd. Downgraded To 'BBB-' On Weaker Financial Measures; Outlook Stable

On Oct. 21, 2020, S&P Global Ratings lowered the issuer credit rating on Fortis TCI Ltd. (FTCI), an operating subsidiary of Fortis Inc. (Fortis) that operates in the Turks and Caicos Islands (TCI), to 'BBB-' from 'BBB' because of weak financial measures due mainly to the COVID-19 pandemic and the related impacts on TCI's tourism economy. The COVID-19 pandemic has negatively affected the TCI economy since March 2020, including tourism, which accounts for about 33% of TCI's gross domestic product (GDP). We expect TCI's real GDP to contract about 24.6% in 2020, while the number of visitors declines approximately 40% before starting to recover in 2021. We expect the pandemic-induced economic downturn to materially weaken FTCI's cash flows, stemming from

...- On Oct. 21, 2020, S&P Global Ratings lowered the issuer credit rating on Fortis TCI Ltd. (FTCI), an operating subsidiary of Fortis Inc. (Fortis) that operates in the Turks and Caicos Islands (TCI), to '###-' from '###' because of weak financial measures due mainly to the COVID-19 pandemic and the related impacts on TCI's tourism economy. - The COVID-19 pandemic has negatively affected the TCI economy since March 2020, including tourism, which accounts for about 33% of TCI's gross domestic product (GDP). - We expect TCI's real GDP to contract about 24.6% in 2020, while the number of visitors declines approximately 40% before starting to recover in 2021. - We expect the pandemic-induced economic downturn to materially weaken FTCI's cash flows, stemming from the combined effects of a decrease in electricity consumption, and higher expenses, leading to weak financial measures for FTCI in 2020 with funds from operation (FFO) to debt of about 10% in 2020 before gradually improving beginning...

Research Update