S&P affirms Pembina Pipeline

Standard & Poor's said it affirmed its ratings on Pembina Pipeline Corp., including its BBB long-term corporate credit rating.

The outlook is stable.

Pembina announced the purchase of the Kakwa sour gas processing facility, associated pipeline and other infrastructure assets from Paramount Resources Ltd. (B-/stable/--) for about C$556 million. The agency expects Pembina to finance the transaction through a combination of a C$300 million bought deal equity financing with a C$45 million over-allotment option, and draws on Pembina's revolving credit facility.

"The acquisition has no effect on our assessment of Pembina's strong competitive position and strong business risk profile," S&P credit analyst Gerry Hannochko said in a news release.

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