content_image/252836.jpg content_image/252837.jpg
restricting the issuance of additional debt such that consolidated debt cannot exceed 65% of the Company’s consolidated capital structure, as defined by the long-term debt agreements. As at December 31, 2011, the Company was in compliance with all debt covenants. 

The change in the Company’s capital structure at December 31, 2011 is due to a net increase in total debt. In June 2011, the Company received debt proceeds of $30 million and in July 2011, the Company received $10 million of debt proceeds, which were offset by principal payments made in 2011. 

<img src='content_image/252836.jpg'>

*  Letters of Credit included those provided to rental generation supplier of $5.5 million. This will be removed upon completion of the rental contracts. 

The Company’s credit ratings under Standard & Poor’s (“S&P”) and the Dominion Bond Rating System (“DBRS”) are as follows: 

S&P A-/Stable 

DBRS A (low) 

The S&P rating is in relation to long-term corporate credit and unsecured debt while the DBRS rating relates to senior unsecured debt. 

In September 2011 S&P adjusted the Company’s ‘A’ credit rating to ‘A-’ and adjusted the outlook from negative to stable. This adjustment reflects S&P’s opinion of a weak customer market given the recent declines in population and the 

negative impact of high fuel costs. The stable outlook reflects S&P’s expectation of relatively predictable forecast cash flows and credit metrics. 

In July 2011 DBRS affirmed the Company’s ‘A’ credit rating while maintaining the categorisation of low with a stable trend. Considerations for the rating were a favourable regulatory regime, reasonable credit metrics and a stable island economy and demand for electricity. Impacting the rating were such factors as hurricane event risk and high government levies on fuel purchases 

## Credit Facilities 

The Company has $38.5 million of unsecured credit financing facilities with RBC (see the “Credit Facilities” table). Of the total, $24.9 million was available at December 31, 2011. 

In November 2011 the Company executed a new credit facility agreement due to the restructuring of the RBC group. The only significant change to the agreement relates to the named lender, now both RBC Royal Bank (Bahamas) Limited and RBC Royal Bank (Cayman) Limited, with RBC Royal Bank (Cayman) Limited named as agent. 

<img src='content_image/252837.jpg'>

Claim process ongoing for remaining insurance funds. Each incident is subject to a $0.5 million deductible. 

