DBRS Comments on Impact of SNC-Lavalin Downgrade on AltaLink

DBRS notes today that it does not expect the downgrade of SNC-Lavalin Group Inc.’s (SNC) ratings to BBB from BBB (high) to affect the ratings of AltaLink Investments, L.P. (rated BBB with a Stable trend) and AltaLink, L.P. (rated “A,” with a Stable trend) (referred to in aggregate as AltaLink) (see the related press release “DBRS Downgrades SNC-Lavalin to BBB and Trend Remains Negative,” dated October 17, 2013). DBRS predominantly views AltaLink on a stand-alone basis, with its ratings largely independent from those of its owner, SNC. However, there could be negative implications for AltaLink’s ratings if SNC is no longer an investment-grade rated issuer or if its ability to inject the equity necessary to maintain AltaLink, L.P.’s deemed capital structure is materially impaired.

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The applicable methodology is Rating Companies in the North American Energy Utilities (Electric and Natural Gas) Industry (May 2011), which can be found on our website under Methodologies.