IE Staff
(September 8 – 18:00 ET) – DBRS is confirming its ratings on CU Inc.
The firm’s commercial paper rates at R1 (middle). Its long-term debt
stays at AA (low). The company’s preferreds are rated Pfd1 (low).
The rating is based on strong demand for natural gas and a tight
supply-demand market for electricity in Alberta. DBRS also notes
that the province’s restructured electricity industry ensures cost
recovery. It also says the Alberta provincial economy remains strong.
On the downside, DBRS points out that the firm remains sensitive to
interest rates. It is in a competitive industry faced with a cumbersome
regulatory environment.
-IE Staff
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