Caribbean Utilities Company, Ltd.  2011  Annual Report Management’s Discussion and Analysis 18 Credit Facilities Claim process ongoing for remaining insurance funds. Each incident is subject to a $0.5 million deductible. 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. The Company’s credit ratings  under Standard & Poor’s (“S&P”) and  the Dominion Bond Rating System  (“DBRS”) are as follows: 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 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. *  Letters of Credit included those provided to rental generation supplier of $5.5 million. This will be removed upon completion of the rental contracts. S&P  A-/Stable DBRS  A (low) Credit Facilities ($ millions) Corporate credit card line  0.4 Letters of credit  *6.1 Operating, revolving line of credit  7.5 Catastrophe standby loan  Demand loan facility - interim funding of capital expenditures  17.0 Total  38.5 Generating Unit Failures and Insurance Claim ($ millions) Cost  Insurance  PP&E Earnings  Capital  Proceeds  Impact  Impact  Expenditures (Net of deductible)  Impact Generating Unit 1  1.0  (0.3)  0.7  -  1.0 Generating Unit 33  6.2  (4.5)  1.7  6.2 Temporary Generation and Expediting Maintenance  3.0  (3.0)  -  -  - Total  10.2  (7.8)  2.4  -  7.2