S&P lowers Inter Pipeline

S&P said it lowered the long-term corporate credit and senior unsecured debt ratings on Inter Pipeline (Corridor) Inc. to A- from A.

The agency also said it removed the rating from CreditWatch with negative implications, where they were placed in March.

The outlook is stable.

The downgrades reflect a view of the decline in shipper quality following the change in the main shipper on the pipeline from higher-rated Shell Canada Energy Ltd., which is guaranteed by Shell Petroleum NV, to lower-rated Canadian Natural Resources Ltd.

There is no change in the assessment of the excellent business risk profile, which reflects a view of the strength of the Corridor Firm Service Agreement (FSA), which is unchanged post-transaction close, the agency said.

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