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S&P lowers TransAlta
Standard & Poor's said it lowered the long-term corporate credit and senior unsecured debt ratings on TransAlta Corp. to BBB- from BBB.
S&P also lowered the global scale preferred stock rating on the company to BB from BB+ and its Canada scale rating to prime-3 from prime-3(high).
The outlook is stable.
The downgrade reflects a belief that TransAlta will not improve and maintain its adjusted funds from operations-to-debt to levels consistent with the previous ratings or improve its business risk profile in the near term, S&P said.
The cash flows associated with the long-term contract that TransAlta has signed at its Centralia facility reduce volume and price risk on the units, the agency said.
However, the contract falls largely outside the rating horizon, so it has a negligible immediate credit impact, S&P said.
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