Legal and structural ring-fencing measures permit the ratings on AltaLink Investments L.P. (AILP) to be separated somewhat from those on subsidiary AltaLink L.P. (AltaLink or ALP), but the ratings remain linked. We believe 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 than one rating category
