Research Update: AltaLink Investments L.P. And Altalink L.P. Downgraded To 'A-' On Revised Group Status; Outlook Is Stable

Recently, Berkshire Hathaway Energy Co. (BHE) disclosed its business plan for PacifiCorp and that its support for it will mostly be comprised of suspending its dividends, allowing for the accumulation of cash over the next several years. We assess this anticipated degree of support as not consistent with our prior expectation and we now believe that BHE's support for its subsidiaries is more limited. Accordingly, we have revised downward our group support assessments for several BHE subsidiaries including intermediate holding company AltaLink Investments L.P. (AILP) and its subsidiary AltaLink L.P. (ALP) to strategically important from core. As such, we downgraded the ratings for AILP and ALP by one-notch, to 'A-' from 'A', reflecting our revised group status assessments for the

...- Recently, Berkshire Hathaway Energy Co. (BHE) disclosed its business plan for PacifiCorp and that its support for it will mostly be comprised of suspending its dividends, allowing for the accumulation of cash over the next several years. - We assess this anticipated degree of support as not consistent with our prior expectation and we now believe that BHE's support for its subsidiaries is more limited. Accordingly, we have revised downward our group support assessments for several BHE subsidiaries including intermediate holding company AltaLink Investments L.P. (AILP) and its subsidiary AltaLink L.P. (ALP) to strategically important from core. - As such, we downgraded the ratings for AILP and ALP by one-notch, to 'A-' from 'A', reflecting our revised group status assessments for the companies. We also lowered our rating on ALP's senior secured debt by one notch to 'A-' from 'A'. - The stable outlooks on AILP and ALP reflects our stable outlook on parent BHE and our expectation that AILP...

Research Update