S&P downgrades AltaGas

S&P said it lowered the long-term issuer credit rating on AltaGas Ltd. to BBB- from BBB.

The agency also said it lowered the rating on the company's senior unsecured debt to BBB- from BBB, the global scale rating on the company's preferred shares to BB from BB+ and the Canada scale rating on the preferred shares to P-3 from P-3(high).

AltaGas recently announced its plans to advance its focus on the midstream and U.S. utilities segments. These plans consist of a capital program focused on organic growth funded through various means, including asset sales and a cut in the common share dividend, S&P explained.

Notwithstanding asset sales and a dividend cut to fund its capital program, AltaGas's financial metrics remain pressured, the agency added.

The negative outlook reflects the possibility that if the company is not able to undertake the proposed asset sales as forecast, further financial pressure will result, S&P said.

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