S&P Global Ratings on Dec. 13 upgraded its issuer credit rating on Atlantic Power Corp. to BB- from B+, citing the company's improving leverage profile.

The outlook was revised to stable from positive to reflect the predictability of highly contracted cash flows and the company's plan to continue paying down debt using excess cash.

Ratings also raised APLP Holdings LP's issue-level ratings on the $400 million outstanding term loan B, $200 million revolving credit facility and C$210 million medium-term notes to BB from BB-.

"We view favorably the company paying down its existing term loan B, as well as the four acquisitions of biomass plants earlier this year," the rating agency wrote in a research update. "Following the biomass acquisitions earlier this year, we believe the company's portfolio shows diversity across power generation and fuel type, though scale remains limited."

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.