Summary: SEMCO Energy Inc.

SEMCO Energy Inc. is a mostly rate-regulated gas distribution business. Relatively small size. Higher-risk unregulated gas storage operations that contribute less than 5% of EBITDA. Average management of regulatory risk. Use of our medial volatility benchmarks based on the low-risk regulated business strategy. Core financial measures that are consistent with the significant financial risk profile category. Assumed flat sales and minimal customer growth. The negative outlook on SEMCO reflects S&P Global Ratings' baseline forecast that parent AltaGas Ltd.'s consolidated financial measures are at the lower end of the significant financial risk profile category and has little cushion to absorb weaker-than-expected cash flows over the next two years. We could lower SEMCO's rating if we downgrade parent AltaGas because consolidated funds

...Outlook: Negative The negative outlook on SEMCO reflects S&P Global Ratings' baseline forecast that parent AltaGas Ltd.'s consolidated financial measures are at the lower end of the significant financial risk profile category and has little cushion to absorb weaker-than-expected cash flows over the next two years....

Summary