{"id":20301,"date":"2012-11-17T00:24:39","date_gmt":"2012-11-17T04:24:39","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=20301"},"modified":"2012-11-17T00:24:39","modified_gmt":"2012-11-17T04:24:39","slug":"cpx-pr-a-downgraded-by-sp","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=20301","title":{"rendered":"CPX.PR.A Downgraded by S&amp;P"},"content":{"rendered":"<p>Standard &#038; Poor&#8217;s <a href=\"http:\/\/www.standardandpoors.com\/prot\/ratings\/articles\/en\/us\/?articleType=HTML&#038;assetID=1245343486730\">has announced<\/a>:<\/p>\n<blockquote>\n<ul>\n<li>\u2022We are lowering our long-term corporate credit and senior unsecured debt ratings on Capital Power Corp. (CPC) and subsidiary Capital Power L.P. to<br \/>\n&#8216;BBB-&#8216; from &#8216;BBB&#8217;.<\/p>\n<li>\u2022We are also lowering our global scale preferred stock rating on CPC to &#8216;BB&#8217; from &#8216;BB+&#8217;, and our Canada scale rating to &#8216;P-3&#8217; from &#8216;P-3(High)&#8217;.\n<li>\u2022We base the downgrade on weakness in the Alberta power market, which we forecast will not improve materially in the medium term.\n<li>\u2022The lower amount of hedging the partnership is undertaking with respect to its Alberta merchant power heightens its significant exposure to lower Alberta forecast prices.\n<li>\u2022The stable outlook reflects our view that adjusted funds from operations-to-debt will remain below the 20% threshold we associate with the &#8216;BBB&#8217; rating.<\/ul>\n<p><b>&#8230;<\/b><br \/>The ratings on CPC and CPLP reflect Standard &#038; Poor&#8217;s opinion of the partnership&#8217;s strong business risk profile and significant financial risk profile. Providing key support to the ratings is a more measured perspective on growth and a moderately diversified generation portfolio, which consists of a relatively young fleet. Moreover, the partnership recently completed the Quality Wind project under budget, reducing construction risk and demonstrating strong project development capability. We also believe CPLP benefits from a portion of its cash flow from long-term power purchase contracts with predominantly creditworthy counterparties, which add predictability. In our view, offsetting these strengths is a high degree of leverage, notwithstanding the partnership&#8217;s efforts to reduce leverage through such things as equity issuance, which exposes it to weakening in power prices, particularly in light of a relatively large open position. We believe this heightens the volatility of cash flow.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Standard &#038; Poor&#8217;s has announced: \u2022We are lowering our long-term corporate credit and senior unsecured debt ratings on Capital Power Corp. (CPC) and subsidiary Capital Power L.P. to &#8216;BBB-&#8216; from &#8216;BBB&#8217;. \u2022We are also lowering &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-20301","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20301","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20301"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/20301\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}