DBRS Assigns Final Rating of “A” to Spy Hill Power L.P. Bonds

DBRS has today assigned a final rating of “A“ with a Stable trend to the $156.3 million, 4.14% Series A Senior Secured Amortizing Bonds (the Bonds) issued by Spy Hill Power L.P. (Spy Hill or the Issuer) and secured by all assets of the Issuer.

DBRS had assigned a provisional rating of “A” with a Stable trend on January 8, 2013. Please refer to the January 8, 2013, press release for more detail. DBRS notes that pricing was better than had been expected at the time the provisional rating was assigned, which has permitted a slight increase in the amount of the Bonds, from $152.0 million to $156.3 million, and allowed the equity distribution to increase from $5.6 million to $11.8 million while maintaining the minimum annual debt service coverage of 1.70 times and breakeven resiliencies. Accordingly, DBRS is of the view that the changes related to a lower funding cost are not material for the rating.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodology is Rating Project Finance, which can be found on our website under Methodologies.