Inter Pipeline (Corridor) Corporation.’s credit rating is now under review from a major oilsands deal last week that will alter the business’s shipping commitments on the major pipeline artery inside northern Alberta.
Credit rating bureau DBRS on Tuesday put the firm “under review with adverse implications” after the announcement of which Calgary-based Shell Canada was initially selling its greater part stake in the Athabasca Acrylic Sands Project (AOSP).
Inter Pipeline Ltd., which is the mum or dad company of Community hall, purchased the Area Pipeline System around 2007. It serves as the main transportation path between the AOSP mine along with the Scotford Upgrader north of Edmonton, Alta.
DBRS proclaimed the review is due to Corridor’s heavy dependence on it’s 25-year Firm Service Commitment on the pipeline system. The credit quality within the FSA would “weaken significantly” if the deal undergoes, the agency said, a result of the higher relative credit score of Shell Canada, which is guaranteed by it has the parent company Layer Petroleum N.V.
On March 9, Shell Canada announced it may well sell its share in AOSP to Canada Natural Resources Ltd. for roughly $11 mil. It maintained a 10 per cent stake within the project through a separate deal with Marathon Gas Corp.
DBRS said the critique was unlikely to affect Corridor’s parent company, Dis Pipeline. Currently Corridor’s industrial paper is rated R1 (low) with a “stable tendency,” according to DBRS.