S&P cuts TransAlta to negative

Standard & Poor's said it revised the outlook on TransAlta Corp. to negative from stable and affirmed the BBB long-term corporate credit rating.

The outlook revision reflects the view that deleveraging is proceeding more slowly than previously expected, the agency said.

The ratings on TransAlta reflect a satisfactory business risk profile and intermediate financial risk profile, the agency added. The business risk profile reflects a predominance of long-term power purchase arrangements, most of which benefit from regulatory support, as well as a relatively diversified electricity generation portfolio, the agency added.

The negative outlook reflects the view of current and forecast credit metrics and exposure to weaker markets in the Pacific Northwest, the agency noted.

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