Legal and structural ring-fencing measures permit the ratings on AltaLink L.P. (AltaLink or ALP) to be separated somewhat from those on parent AltaLink Investments L.P. (AILP), but the ratings remain linked. Standard&Poor's Ratings Services believes these measures and regulatory oversight restrict AILP's ability to significantly increase cash distributions from ALP, and, in the event of an AILP default, provide a significant measure of protection to the operating company. Our ratings methodology begins with a notional consolidated credit quality assessment of 'bbb' at AILP. Based on the strength of the ring-fencing measures, neither rating can be more than two notches from the notional consolidated credit quality assessment, and the ratings on AILP and ALP cannot be separated by more
