hang on for a ride---

Apr. 2, 2008 (Thomson Financial delivered by Newstex) -- Standard & Poor's (NYSE:MHP) Ratings Services said it has placed its 'A-' long-term corporate credit rating (CCR) on TransCanada Pipelines Ltd. on negative watch after the company agreed to buy the Ravenswood generating facility in New York City for $2.8 billion.

S&P said the 2,480 megawatt generating facility's returns are likely to be more variable and less certain than those of TransCanada's core pipeline business.

The ratings agency said it will examine this purchase in greater detail and evaluate whether this purchase combined with further acquisitions could weaken the company's business risk profile.