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Algonquin Power Co.’s (APCo) ‘BBB’ Long-Term Issuer Default Rating (IDR) primarily reflects the company’s conservatively managed power generation business, which has a relatively good business risk profile and robust cash flows. Conservatively Managed Power Generation Business: APCo accounts for 20%–25% of parent Algonquin Power & Utilities Corp.’s (APUC, BBB/Stable) consolidated EBITDA and consists of more than 40 power facilities in operation or development, providing for meaningful asset diversification. Three-quarters of APCo’s EBITDA is derived from U.S.-based assets, with the remainder from Canadian assets. As of Dec. 31, 2021, APCo owned and operated approximately 2.3GW of gross generation capacity, of which approximately 80% is wind, 10% solar, 5% hydro and 5% thermal. ���������ֳ� views the unregulated power generation business as somewhat riskier than regulated utilities, but APCo’s conservative management of the business mitigates much of this increased risk. Approximately 82% of APCo’s electrical output is sold pursuant to long-term contractual arrangements with a production-weighted average remaining contract life of approximately 12 years as of Dec. 31, 2021, providing a long timeline of high profitability margins, and relatively stable and robust cash flows. APCo also maintains relatively low leverage on the business.