INE Off Watch-Positive, Says S&P

Standard & Poor’s has announced:

  • •We are affirming our ratings on Innergex Renewable Energy Inc., including our ‘BBB-‘ long-term corporate credit rating on the company, and removing the ratings from CreditWatch with positive implications.
  • •We believe the acquisition of Alterra Power Corp. increases Innergex’s scale and improves diversity by geography and fuel-type or resource.
  • •We are revising our financial risk profile to significant from
    intermediate after the additional debt used to fund the cash portion of the acquisition.

  • •The stable outlook reflects our expectation that Innergex’s portfolio of power generation facilities will continue to operate under long-term contracts with investment-grade counterparties and generate fairly predictable cash flows to support its holding-company debt obligations.


S&P Global Ratings today affirmed its ‘BBB-‘ long-term corporate credit rating on Longueuil, Que.-based Innergex Renewable Energy Inc. At the same time, S&P Global Ratings affirmed its ‘BB’ global scale rating and ‘P-3’ Canada scale rating on the company’s preferred shares. S&P Global Ratings removed the ratings from CreditWatch with positive implications, where they were placed Nov. 2, 2017. The outlook is stable.

A downgrade could happen if FFO-to-debt ratio consistently falls below 23% over our outlook period. This could result from increased costs at projects under construction resulting in increased capital contributions from Innergex funded through debt, or from a significant reduction in cash flows from its
projects due to operational challenges.

An upgrade could happen if Innergex continues to meet projections while FFO-to-debt moves materially higher than 35%. This could result from increased cash flows from new projects or new acquisitions or deleveraging with paying
down of debt or lower balances outstanding on the credit facility.

Affected issues are INE.PR.A and INE.PR.C.

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