S&P upgrades AltaLink

Standard & Poor's said it raised its long-term corporate credit and senior unsecured debt ratings on AltaLink Investments LP (AILP) to BBB+ from BBB-.

At the same, the agency affirmed its ratings, including its A- long-term corporate credit rating, on operating subsidiary AltaLink LP.

The outlooks are stable.

"The upgrade on AILP reflects our view of Berkshire Hathaway Energy Co.'s purchase of the company for C$3.1 billion after receiving the required approval from the Alberta Utilities Commission," S&P credit analyst Gerry Hannochko said in a news release.

The upgrade also reflects the application of the agency’s group rating methodology because it view AltaLink Investments’ strategic importance to BHE as "core." BHE has a group credit profile of bbb+.

Although S&P assesses AltaLink as an insulated subsidiary with regulatory and ring-fencing provisions that would allow it to have up to a three-notch separation above the AltaLink Investments’ group credit profile, the rating on AltaLink is capped at its own a- standalone credit profile.

S&P said the standalone credit profile reflects what it views as the company's "excellent" business risk profile, which a strong regulatory framework for transmission in Alberta supports and its "significant" financial risk profile.

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