POLITICS

Financing for Muskrat Falls project in Labrador gets AAA credit rating

04/23/2013 02:43 EDT | Updated 06/23/2013 05:12 EDT
ST. JOHN'S, N.L. - The financing of the Muskrat Falls hydroelectric development in Labrador has received a AAA credit rating from Moody's Investors Services.

Provincial Natural Resources Minister Tom Marshall told the legislature today that the credit score is based on the strength of the federal loan guarantee announced in November.

The loan guarantee is expected to save Newfoundland and Labrador and Nova Scotia about $1 billion in borrowing costs on the $7.7 billion project.

Construction of Muskrat Falls is underway and proponents hope it begins generating electricity in 2017.

Power would be shipped from Muskrat Falls in Labrador to Newfoundland and then Nova Scotia along a 180-kilometre subsea link.