Dec 6 - Standard & Poor's Ratings Services today said that the announced
joint venture between Capital Power L.P. (CPLP; BBB-/Stable/--) and ENMAX Corp.
(BBB+/Stable/--) to build, own, and operate the Shepard Energy Centre does not
affect the ratings on CPLP, its parent, Capital Power Corp. (CPC;
BBB-/Stable/--) or ENMAX. We expect the transaction to close in first-quarter
We believe the joint venture is credit neutral for CPLP and CPC because the
financing plan that management has proposed in combination with the current
price forecast for electricity, does not cause deterioration of the cash flow
adequacy of CPLP below the thresholds consistent with its current rating.
In addition, we believe that the joint venture's rating impact on ENMAX to be
relatively neutral. The announcement with respect to Shepard is consistent
with the company's previously announced intention to find a joint-venture
partner. Moreover, although the joint venture will reduce ENMAX's financial
commitment to the project, the nature of the tolling agreement with CPLP will
result in an increase in imputed debt (Standard & Poor's-calculated), which
means the overall impact on our adjusted financial metrics will be generally