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TEXT-S&P: Algonquin Power's Chaplin project credit neutral
2012年2月29日 / 晚上6点04分 / 6 年前

TEXT-S&P: Algonquin Power's Chaplin project credit neutral

Feb 29 - Standard & Poor's Ratings Services today said that its
ratings on Algonquin Power Co. (APCo; BBB-/Positive/--) are unaffected by the
company's announcement of the 177-megawatt Chaplin wind project development in
Saskatchewan. The project has no merchant risk, as APCo will sell all energy
production under a 25-year power purchase agreement with SaskPower (not rated),
which is wholly owned by the Province of Saskatchewan (AAA/Stable/A-1+). The
company's target construction completion is December 2016 with an estimated
capital cost of C$355 million. We assume that the company will finance this
project with about 50% equity and 50% debt, consistent with its long term target
capital structure. Based on this, we continue to believe that parent Algonquin
Power & Utilities Corp. will achieve our target ratios of adjusted
funds from operations-to debt of 15%-20%, with about 40%-50% of its consolidated
cash flows supported by regulated cash flows from its other subsidiary, Liberty
Utilities Co. (not rated).

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