S&P rates TransCanada preferreds BBB/P-2

Standard & Poor's said it assigned its A- long-term corporate credit rating to TransCanada Corp.

The outlook is stable.

At the same time, S&P assigned its BBB global scale and P-2 Canada scale preferred stock ratings to TransCanada's C$550 million cumulative redeemable first preferred shares, series 1.

"The ratings reflect our opinion of the stable earnings stream from the company's natural gas pipeline operations and contracted power assets, the predictable free cash flow of its key pipeline assets, and the company's diverse earnings," said S&P credit analyst Kenton Freitag in a news release.

"The company's leverage and the high level of capital expenditures in 2009-2011 related to the Keystone Pipeline constrain the ratings," Freitag added.

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