Based on Standard & Poor's Ratings Services' assessment of the existing ring-fencing measures, the ratings on AltaLink reflect its strong business profile and average financial position. AltaLink benefits from low-risk, efficient transmission assets, an attractive transmission service franchise with favorable economic fundamentals, and relatively supportive regulation. Although the ratings currently reflect AltaLink's stand-alone credit quality, the ratings remain linked with AltaLink Investments L.P.'s business and financial profiles. A material deterioration in AltaLink Investments' consolidated risk profile would therefore have a direct impact to the ratings on AltaLink. Due to the ring fencing between AltaLink and its parent, AltaLink is substantially insulated from AltaLink Investments. The measures in place shielding AltaLink include a structure reflective of a single-purpose entity, with covenants
