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CREDIT RATINGS
The Corporation's credit ratings are as follows:
Standard & Poor's ("S&P") A- (long-term corporate and unsecured debt credit rating)DBRS A(low) (unsecured debt credit rating)In February 2013 S&P and DBRS affirmed the Corporation's debt credit ratings. The above-noted credit ratings reflect the Corporation's business-risk profile and diversity of its operations, the stand-alone nature and financial separation of each of the regulated subsidiaries of Fortis, management's commitment to maintaining low levels of debt at the holding company level, the Corporation's reasonable credit metrics and its demonstrated ability and continued focus on acquiring and integrating stable regulated utility businesses financed on a conservative basis. The credit ratings also reflect the Corporation's financing plans for the pending acquisition of CH Energy Group and the expected completion of the Waneta Expansion on time and on budget.
CAPITAL EXPENDITURE PROGRAM
Capital investment in infrastructure is required to ensure continued and enhanced performance, reliability and safety of the gas and electricity systems and to meet customer growth. All costs considered to be maintenance and repairs are expensed as incurred. Costs related to replacements, upgrades and betterments of capital assets are capitalized as incurred.
A breakdown of the $250 million in gross consolidated capital expenditures by segment for the first quarter of 2013 is provided in the following table.
-------------------------------------------------------------Gross Consolidated CapitalExpenditures (Unaudited) (1)Quarter EndedMarch 31, 2013($ millions)-------------------------------------------------------------------------------------------------------------------------------------------------------- Other RegulatedFortisBC ElectricEnergy Fortis FortisBC Newfoundland Utilities -Companies Alberta Electric Power Canadian----------------------------------------------------------------------------38 95 17 15 13---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Regulated Non- Non- Regulated Electric Regulated - Regulated - Utilities - Utilities - Fortis Fortis Canadian Caribbean Generation Properties Total---------------------------------------------------------------------------- 178 11 48 13 250--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Relates to cash payments to acquire or construct utility capital assets, income producing properties and intangible assets, as reflected on the consolidated statement of cash flows. Excludes capitalized depreciation and amortization and non-cash equity component of AFUDC.
