DBRS Removes AltaLink, L.P. and AltaLink Investments, L.P. from Under Review with Developing Implications

DBRS Limited (DBRS) has today removed AltaLink, L.P.’s (ALP) Commercial Paper and Medium-Term Notes (Secured) rating and AltaLink Investments, L.P.’s (AILP; collectively with ALP, AltaLink or the Companies) Issuer Rating and Senior Unsecured Bonds rating from Under Review with Developing Implications. DBRS has also confirmed ALP’s Commercial Paper at R-1 (low) and Medium-Term Notes (Secured) at “A,” and AILP’s Issuer Rating and Senior Unsecured Bonds at BBB, all with Stable trends, following the completion of the Companies’ acquisition by Berkshire Hathaway Energy Company (BHE) for $3.1 billion (the Transaction).

The Transaction, which was executed in line with DBRS’s expectations as outlined in the press release “DBRS Places AltaLink, L.P., and AltaLink Investments, L.P. Under Review with Developing Implications” dated May 2, 2014, is viewed as neutral to AltaLink’s business risk and financial risk profiles. Following the Transaction, the legal structure of the Companies’ operations will remain unchanged, and ALP will continue to operate exclusively as a 100% electricity transmission company on a stand-alone basis within the BHE umbrella. The funding strategy at AltaLink is also expected to remain unchanged, with ALP’s key credit metrics remaining commensurate with its current rating category. DBRS acknowledges that going forward, AltaLink will benefit from being a part of the BHE family, which has strong financial flexibility to contribute necessary equity injections in a timely manner during this period of heavy capital requirements ($2.7 billion during the next three years).

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are Rating Companies in the Regulated Electric, Natural Gas and Water Utilities Industry, Rating Holding Companies and Their Subsidiaries and DBRS Criteria: Commercial Paper Liquidity Support for Non-Bank Issuers which can be found on our website under Methodologies.