S&P: OPTI Canada unaffected

Standard & Poor's said that the revision by OPTI Canada Inc. (BB/stable) to the estimated cost of the Long Lake Project, to C$4.2 billion from C$3.8 billion, will not affect the ratings or outlook on the company.

According to the agency, OPTI said higher labor costs and lower productivity led the company and its partner, Nexen Inc. (BBB-/stable), to increase the estimated capital cost to complete phase 1 of the project by 10%.

Despite the cost escalation, OPTI's existing liquidity, including the availability under its credit facilities, should be sufficient to fund phase 1 of its Long Lake Project, in northern Alberta and its committed costs for phase 2, the agency added.

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