DBRS Maintains Under Review Status on Fair Hydro Trust, Series 2018-1 and Series 2018-2 Notes

DBRS Limited (DBRS) maintained the Under Review status on the following notes (collectively, the Notes) issued by Fair Hydro Trust (the Trust):

-- 3.357% Senior Notes due May 15, 2033, Series 2018-1 rated AAA (sf), Under Review with Negative Implications
-- 3.52% Senior Notes due May 15, 2038, Series 2018-2 rated AAA (sf), Under Review with Negative Implications
-- 3.637% Subordinated Notes due May 15, 2033, Series 2018-1 rated AA (sf), Under Review with Negative Implications
-- 3.834% Subordinated Notes due May 15, 2038, Series 2018-2 rated AA (sf), Under Review with Negative Implications
-- 3.957% Junior Subordinated Notes due May 15, 2033, Series 2018-1 rated A (sf), Under Review with Developing Implications
-- 4.214% Junior Subordinated Notes due May 15, 2038, Series 2018-2 rated A (sf), Under Review with Developing Implications

The Notes were originally placed Under Review on September 28, 2018, following public announcements by the Government of Ontario (rated AA (low) with a Stable trend by DBRS) that may trigger the Limited Guarantee as it relates to the Ontario Fair Hydro Plan Act, 2017 (FHPA) and the Notes issued by the Trust.

Since that time, no legislative changes have been made to the FHPA and the Limited Guarantee has not been exercised. As the Legislative Assembly of Ontario will not resume sitting until February 19, 2019, no new legislation is expected to be passed during this period. DBRS will continue to monitor the situation and take appropriate rating action, if warranted.

Notes:
The principal methodology is Rating Canadian Structured Finance Transactions (Appendix: Legislated Utility Collections), which can be found on dbrs.com under Methodologies & Criteria.

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 under Related Documents or by contacting us at info@dbrs.com.

The rated entity or its related entities did not participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

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