The ratings on AltaLink L.P. reflect Standard&Poor's Ratings Services' opinion of the company's excellent business risk profile and significant financial risk profile. In our view, owner support, low-risk, regulated electricity transmission assets and a supportive regulatory environment and market framework for transmission companies in the Province of Alberta (AAA/Stable/A-1+) support the ratings. We believe AltaLink's weak cash flow metrics and large capital funding requirements offset these strengths. AltaLink is a regulated transmission company wholly owned by AltaLink Investments L.P. (AILP; BBB-/Stable/--). Legal and structural ring-fencing measures permit the ratings on AltaLink to be separated somewhat from those on its parent, but the ratings remain linked. We believe these measures and regulatory oversight restrict AILP's ability to significantly increase
