UPDATE: National Bank Financial Downgrades Atlantic Power to Hold on Weak Guidance
National Bank Financial reduced its rating on Atlantic Power (NYSE: AT) from Sector Perform to Underperform.
National Bank Financial commented, "ATP had guided towards a substantial decrease in distributions from its Lake and Auburndale projects in Florida after the PPAs expire on July 31 and Dec. 31, 2013. However, the company now anticipates that potential new PPAs in Florida would not generate annual distributions greater than its tolling agreement with Pasco signed in 2008 (i.e., ~US$4 million), suggesting an ~80-85% reduction from current annual distributions of ~US$32 mln for Lake and ~US$26 mln for Auburndale. We had previously reduced our post-2013 contributions for Lake and Auburndale by just 50%."
Atlantic Power closed at $14.84 on Monday.
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