BROOKFIELD RENEWABLE PARTNERS L.P.
All trends are Stable. The Senior Unsecured Debentures and Notes issued by
DBRS Morningstar notes that BEP's contracted generation percentage improved following the recontracting of the Lievre facilities with
DBRS Morningstar notes that BEP plans to grow its portfolio over the medium term across the distributed and utility-scale solar, wind, storage, hydro, and transition assets. DBRS Morningstar expects that this expansion will be primarily for contracted assets and that BEP will not begin constructing projects until a power purchase agreement is signed and it has received fixed-price engineering, procurement and construction and equipment supply agreements; this, along with BEP's development experience, should reduce project execution risk. DBRS Morningstar expects these growth projects will increase BEP's size and geographic, customer, and technology diversification profile. However, DBRS Morningstar expects that these assets as a whole will have modestly higher political risk and relatively weaker counterparties compared with BEP's existing portfolio. DBRS Morningstar expects that a significant portion of these new assets will be funded with nonrecourse financing and contributions from noncontrolling interest (NCI) partners, which will limit BEP's economic exposure to any specific growth project. DBRS Morningstar expects BEP to prudently fund its contributions to these growth assets through a combination of debt, upsizing projects with nonrecourse debt, and capital recycling initiatives.
DBRS Morningstar focuses on BEP's key modified consolidated metrics to assess its financial profile because (1) substantial debt is at the project level, which is nonrecourse to BEP, and is self-financed, and (2) distributions to BEP from projects are net of cash distributions to NCI partners. DBRS Morningstar notes that BEP's 2021 and LTM 2022 key credit metrics, both on a consolidated and modified consolidated basis, remain strong. BEP's corporate liquidity remains strong with approximately
DBRS Morningstar expects the Company to maintain its modified consolidated key credit metrics in line with the current ratings by prudently funding its growth. DBRS Morningstar does not expect a positive rating action in the near term; however, a significant deterioration in BEP's business risk profile or a deterioration in its financial metrics could potentially result in DBRS Morningstar taking a negative rating action.
There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.
Notes:
All figures are in
The principal methodologies are Rating Companies in the Independent Power Producer Industry (
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@dbrsmorningstar.com.
The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.
The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.
For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.
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Ratings
Date Issued Debt Rated Action Rating Trend Attributesi
US = Lead Analyst based in USA
CA = Lead Analyst based in
E =
U =
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-participating
27-May-22 Subordinated Notes Confirmed BBB (low) Stb CA
Date Issued Debt Rated Action Rating Trend Attributesi
US = Lead Analyst based in USA
CA = Lead Analyst based in
E =
U =
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-participating
27-May-22 Issuer Rating Confirmed BBB (high) Stb CA
27-May-22 Class A Preferred Limited Partnership Units (U.S. ) Confirmed BBB (low) Stb CA
27-May-22 Class A Preferred Limited Partnership Units Confirmed Pfd-3 (high) Stb CA
Brookfield Renewable Partners ULC
Date Issued Debt Rated Action Rating Trend Attributesi
US = Lead Analyst based in USA
CA = Lead Analyst based in
E =
U =
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-participating
27-May-22 Senior Unsecured Debentures and Notes Confirmed BBB (high) Stb CA
Date Issued Debt Rated Action Rating Trend Attributesi
US = Lead Analyst based in USA
CA = Lead Analyst based in
E =
U =
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-participating
27-May-22 Class A Preference Shares Confirmed Pfd-3 (high) Stb CA
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