AltaLink Investments L.P.

The stable outlook on AltaLink Investments L.P. (AILP) reflects our outlook on parent Berkshire Hathaway Energy Inc. (BHE). In addition, the outlook reflects that, during our two-year outlook period, we do not expect changes to the relationship between AILP and the BHE group. We expect AILP will continue to be a core part of the BHE group given the asset's nature and that BHE is typically a long-term investor. Furthermore, we expect AILP will continue generating stable and predictable cash flows through its only operating subsidiary, AltaLink L.P. (ALP). The stable outlook on BHE over the next 24 months reflects S&P Global Ratings' expectation that management will continue to focus on its core utility operations and reach constructive regulatory outcomes

...We expect Altalink Investments L.P. (AILP) to effectively manage regulatory risk, supporting our assessment of its excellent business risk profile. This reflects the company's essential transmission operations under a generally credit-supportive framework in Alberta, Canada. We expect AILP's forecast credit metrics to remain at the lower end of the range for the significant financial risk profile category. On a forward-looking basis, we forecast funds from operations (FFO) to debt to average in the range of 9.5%-10.5%, evaluated using our low-volatility financial benchmark tables....

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