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Alliance Pipeline LP Jul 07
Standard & Poors, July 2007
Abstract
Low operating risk as a regulated pipeline; Cash flow stability, with long-term, firm contracts on substantially all of the pipeline's capacity; Strong counterparty credit quality, with 79% of the pipeline's transportation contracts with investment-grade entities; and Adequate base case debt service coverage ratios (DSCRs). The reliance on the Western Canada Sedimentary Basin, which faces gradual, long-term reserve declines; The term of the various notes extends well beyond the term of the existing 15-year contract obligations; and Revenues could fall below original forecasts if transportation contracts are not renewed, resulting in insufficient funds to redeem the outstanding bonds. The rating on Alliance Pipeline LP's (Alliance U.S.) $950 million senior secured notes is 'BBB+'. The outlook is stable. The Alliance Pipeline system...
Companies mentioned in this report are: Alliance Pipeline L.P.,Veresen Inc.
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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