S&P rates Vantage Pipeline BB-

Standard & Poor's said it assigned a BB- rating and 3 recovery rating to Vantage Pipeline Canada ULC's and Vantage Pipeline US LP's $225 million term loan B.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The ratings reflect the group's satisfactory business risk profile and highly leveraged financial risk profile, S&P said.

The group relies on one contracted speculative-grade shipper and one supply source, S&P said, and has a single pipeline asset.

There also is construction risk considered in the ratings because the pipeline is set to be completed in October 2013 for an early November 2013 in-service date, the agency said.

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