Algonquin Power Co.: Rating Report

On January 16, 2018, DBRS Limited (DBRS) confirmed the Issuer Rating and the Senior Unsecured Debentures rating of Algonquin Power Co. (operating as Liberty Power Corp. (LPCo), or the Issuer;) at BBB (low), both with Stable trends. The Issuer is wholly owned by Algonquin Power & Utilities Corp. (APUC; rated BBB (low) with a Stable trend by DBRS), a holding company with interests in LPCo and Liberty Utilities Corp. The confirmations reflect LPCo’s (1) strong contracted portfolio, which has a weighted-average (WA) contract length of 16 years with power purchase agreements (PPAs) backed by creditworthy counterparties; (2) diversified asset portfolio; and (3) strong operational expertise. The strengths are offset by exposure to (1) significant capital expenditures (capex), (2) volume risk and (3) operating risk.