DBRS shifts Northwestern Hydro trend to negative

DBRS said it changed the trends for Northwestern Hydro Acquisition Co Inc., Northwestern Hydro Acquisition II LP and Northwestern Hydro Acquisition III LP to negative from stable and confirmed their ratings at A(low).

The negative trends stem from several years of debt-service coverage ratios under the level required of the current rating caused by consistently higher-than-budgeted costs due to one-time events and the likelihood that DSCRs will continue underperforming in the foreseeable future, DBRS said.

“Going forward, DBRS Morningstar expects to closely monitor the costs of repairs which have already been budgeted, as well as the occurrence and nature of any additional operational issues. A negative rating action is likely if these activities run over the currently anticipated budget, if additional one-time operational issues are uncovered, or if the interest-only DSCR otherwise continues to materially underperform rating-case expectations,” the agency said in a press release.

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