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000-120 Associate: IBM i 7.1 Administration

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000-120 exam Dumps Source : Associate: IBM i 7.1 Administration

Test Code : 000-120
Test designation : Associate: IBM i 7.1 Administration
Vendor designation : IBM
: 82 true Questions

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IBM Associate: IBM i 7.1

provider Extension Outlined For IBM i 7.1 And PowerHA 7.1 | killexams.com true Questions and Pass4sure dumps

December four, 2017 Timothy Prickett Morgan

working gadget suppliers don't devotion to assist too many releases of their code at the selfsame time. It stands to motive because software advocate expenses beget people as a basis, and people simplest rep more costly, now not much less so. And the organizations that accomplish operating methods beget newer code with extra points and stronger security and reliability that they exigency their shoppers to movement to.

IBM i 7.1 has been a well-regarded illustration of Big Blue’s proprietary midrange operating techniques, a line that arguably stretches every separate the mode back to the first unencumber of control application Facility (CPF) for the equipment/38 again in August 1979. IBM i 7.1 turned into launched on April 13, 2010, and it shipped ten days later; it is the longest supported unlock of any IBM i midrange platform in the historical past of the AS/400 and its progeny. It has had a very lengthy lifestyles indeed. again on April eleven this 12 months, in announcement missive 917-080, IBM warned valued clientele that IBM i 7.1 can exist withdrawn and its guide discontinued on April 30, 2018, which they mentioned returned in may when this announcement, which become made quietly, came to light.

at the time, they did not recognize what the nature and timing of prolonged aid could exist for IBM i 7.1, but IBM has establish out some statements in fresh weeks to inform clients the timing for that extended assist. IBM has additionally mentioned extended abet for its PowerHA 7.1 exorbitant availability clustering application and talked in a sunder observation about sunsetting obvious WebSphere application Server middleware that turned into frequently installed with IBM i 7.1. (extra on that in a minute.)

only a reminder they always accomplish when speaking about prolonged aid: The hardware maintenance associated with vim methods and prior gadget i, iSeries, and AS/four hundred iron is unaffected through the withdrawal of advocate for this or any other IBM i or OS/400 working gadget release. IBM is satisfied to accomplish cash protecting hardware, but devotion other operating apparatus suppliers, it puts an halt date on guide for the application since it cannot hold consultants at hand to advocate traditional stuff when original stuff – during this case, iNext or what many are calling IBM i 8.1 – is around the corner, probably concurrent with the launch of the industrial-grade Power9 methods early in 2018.

In announcement missive 617-024, IBM establish a timeframe on the extended assist, and it seems it is set seven months longer than they expected based on historical developments. They anticipated for extended aid for IBM i 7.1 to Run out on September 30, 2020, nevertheless it turns out that IBM is going to offer extended abet for this liberate unless April 30, 2021. IBM doesn't submit pricing for prolonged aid, nevertheless it was a 60 percent premium for the application service Extension (PSE) supplemental, charge-based service compared to universal utility upkeep (SWMA) on IBM i 5.4 (often known as V5R4) and IBM i 6.1 and 6.1.1. They suspect it can exist within the selfsame ballpark for PSE for IBM i 7.1. additionally abide in intellect that once assist is shut down for any IBM i unlock, the entire licensed program items affiliated with that unlock are additionally withdrawn, and they are covered through the service extension.

The extended advocate features are not exactly the selfsame as SWMA. i am noiseless not limpid if this prolonged abet comprises cumulative PTF updates and that's as a result of I actually beget been instructed that IBM does not generate original bug fixes for releases that are outside of commonplace SWMA. but the announcement letters during the past beget now and again said there are original fixes to original issues below PSE. utilization advocate – that means you are trying to finish some thing and it is not working appropriate, or you want aid figuring it out – is a Part of PSE every separate over typical enterprise hours. IBM will now not finish original characteristic pile on IBM i 7.1 as a Part of PSE.

To exist actual, here is what IBM says is coated for provider extension for IBM i 7.1 and PowerHA 7.1:

  • utilization and frequent Defect aid. IBM advocate is attainable every separate through unconcerned enterprise hours for counsel with questions about the usage of IBM i 7.1 and PowerHA 7.1, issue decision, and suggestions opting for and obtaining existing fixes for issues with IBM i 7.1 and PowerHA 7.1.
  • New Fixes. You rep fixes for brand spanking original problems.
  • IBM has, due to the fact that IBM i 6.1, provided sub-means pricing for PSE, so the costs might exist prorated in keeping with how many cores IBM i 7.1 is running on in a system when you beget distinctive releases working on analytic partitions.

    that you can survey the legitimate IBM i assist lifecycle and improve planning web page privilege here, and here is one other doc that outlines service extension for IBM i 6.1 and 7.1 releases. I even beget built my own table calculating the time between the phases for each edition and unencumber in accordance with this and other records, which that you could survey privilege here:

    (click on on that image to enlarge it.)

    As that you can see, the time lag between the announcement and delivery of OS/400 and IBM i releases has been shrinking even as the lifespan of releases has been stretching out. within the 2000s, this lengthening became due to a slowdown in earnings of the platform and the maturity of the software stack, however with fresh releases, due to the technology Refresh update technique, a free up of IBM i has lived longer since it become designed to exist up-to-date. This made each huge Blue and its IBM i consumers. however with IBM i eight.1 coming, IBM can’t abet IBM i 7.1. Three concurrent releases at the identical time is satisfactory, and it is greater than lots of working apparatus companies do.

    That means that the clock has just begun ticking on IBM i 7.2, by the way.

    As we've brought up before, it would exist an excellent factor if there turned into a direct leap IBM i 7.1 or IBM i 7.2 to IBM i eight.1, and one that did not require a circulation to Power9 iron, which may exist costly and scarce unless later in 2018.

    In a connected weigh number, IBM has up to date its FAQ about the advocate of WebSphere utility Server for IBM i, which that you could survey in this doc. listed below are the conclusion of assist dates for the quite a lot of WebSphere releases:

  • WebSphere utility Server V7.0 – April 30, 2018
  • WebSphere application Server V8.0 – April 30, 2018
  • Java 6 in unconcerned changed into V8.5 – December 31, 2017
  • Java 7 in usual become V8.5 – September 30, 2019
  • Java 6 in Liberty – September 30, 2017
  • Java 7 in Liberty – September 30, 2019
  • here is IBM’s observation on this:

    “last September, IBM announced that the conclusion of service date for WebSphere application Server V7.0 and WebSphere utility Server V8.0 is April 2018. become V8.5 and V9.0 are available these days at no additional freight to changed into shoppers with active subscription and guide. For turned into V8.5 users, abet of Java 6 with unvarying was will halt December thirty first, 2017 and advocate for Java 6 with Liberty will halt September 30, 2017. abet for Java 7 with both common was and Liberty might exist discontinued after September 2019. changed into V8.5 provides the selection to disburse Java 6, Java 7 or Java 8. shoppers the disburse of become V8.5 are counseled to movement as much as Java eight.”

    IBM advises valued clientele to study this hyperlink and this other link for further assistance.

    linked experiences

    Say Sayonara To IBM i 7.1 subsequent Spring

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    all of your IBM i basis Are Belong To Us

    IBM i installed basis Dominated by traditional Iron

    IBM Is engaged on original software Licensing Schemes

    IBM Lets MSPs beget Utility-Priced IBM i 6.1 For Clouds

    huge Blue Backs Off On IBM i upkeep fee Hike

    large Blue Jacks software maintenance expenditures For IBM i

    IBM Sunsets i5/OS V5R4 again–For true This Time

    The Carrot: i5/OS V5R4 gets Execution live until may also

    The Stick: IBM Jacks Up i5/OS V5R4 expenditures

    Reader feedback on The Carrot: i5/OS V5R4 receives Execution live except may also

    The i 7.1s beget It; i5/OS V5R4 extended

    IBM Sunsets i5/OS V5R4, Kills Older 595 Iron

    Power9 Stuff:

    more On That Power8 Core Activation Deal

    IBM Deal fees latest Power8 Compute devotion Future Power9

    tips For The energy techniques store That Has To buy Now

    IBM Cuts Core And remembrance Pricing On Entry vim Iron

    Sundry October power techniques bulletins

    Power9 Big Iron “Fleetwood/Mack” Rumors

    speaking Power9 With IBM Fellow Brad McCredie

    the necessity Of an influence methods 911

    IBM Inks In conclusion Of abet For Power6 And Power7 Iron

    Sundry Withdrawals For Power7 And Power7+ gear

    Clearing The Decks ahead Of The Power9 Launch

    The Chatter About Future Power9 Servers

    Why no longer Overclock energy Chips For IBM i?

    The vim Neine Conundrum

    IBM Commits To Power9 enhancements For huge vigour programs shops

    The Cognitive techniques/500 2018 edition

    IBM i And AIX received’t rep Power9 until 2018

    The Supercomputer at the coronary heart Of The power systems Revival

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    The potentialities For A Power9 Revolution


    IBM becomes ABI’s biggest associate Member | killexams.com true Questions and Pass4sure dumps

    LONDON, England, March 7 -- The association of British Insurers issued privilege here news:

    know-how vast IBM has joined the association of British Insurers (ABI) as an associate Member, the greatest enterprise to achieve this.

    Angela Magee, vice president, coverage, IBM international company functions (UK and ireland), has blogged about why privilege here (https://www.abi.org.uk/news/weblog-articles/2019/03/ibm-becomes-the-greatest-affiliate-member-of-the-abi/).

    Huw Evans, Director established of the ABI, spoke of:

    "we are delighted to promulgate IBM has spin into their biggest affiliate Member. Welcoming this sort of terrific family unit designation displays the nice and international attain of the ABI's work.

    "With their global talents in technology, the ABI's affiliate membership offers IBM with extra opportunities to toil alongside their contributors and their key stakeholders, and that i appear to exist forward to collaborating with them."


    IBM Db2 Analytics Accelerator version 7.1 — efficiency with better Flexibility | killexams.com true Questions and Pass4sure dumps

    organizations possess a wealth of effectual records on their industry programs. Ideally, choices may noiseless exist derived from this data as it’s generated to abet nowadays’s true-time enterprise needs. Deriving insight from out of date facts can lead to terrible first-class selections and probably detrimental actions. This could permit fraud and cyber criminals to buy edge of that information and the techniques. It may additionally result in lost earnings via missed income alternatives. in a similar fashion, the equal could exist eminent of now not being in a position to resolve records speedy adequate.

    IBM Db2 Analytics Accelerator for z/OS (Accelerator) can aid tackle both of these challenges. in the beginning, it allows queries to exist performed on latest transactional records with exiguous or no affect to operational gadget performance. Secondly, the Accelerator can toil to vastly enrich the efficiency of germane queries typically present in analytics functions.

    The Accelerator is designed for top-velocity evaluation of commercial enterprise facts. it could actually aid in the reduction of operational freight and complexity via bringing the analytics nearer to the records and enabling nigh precise-time analytics on transactional facts as it’s generated. The Accelerator transforms the IBM Z platform privilege into a hybrid transaction and analytical processing (HTAP) environment. it might deliver excessive-pace processing for advanced, aid-intensive Db2 queries to aid business-vital reporting and analytic workloads.

    Flexibility and performance with Db2 Analytics Accelerator edition 7.1

    The Accelerator has been attainable for a couple of years and is used by IBM Z customers throughout many industries to aid accelerate involved queries on enterprise-critical statistics, while not having to movement that facts to a sunder platform for analytics. Executing transaction and analytical workloads concurrently on the selfsame platform can abet reduce latency while leveraging the safety capabilities of the IBM Z platform. Analytical processing does not humiliate transactional workload performance as a result of transactional and analytical queries are each and every processed inside sunder compute aid swimming pools.

    As depicted in determine #1, the Db2 Analytics Accelerator edition 7.1 gives you two deployment alternatives, both on the IBM built-in Analytics device (IAS) and/or at once on the IBM Z mainframe.

    figure #1: dedicated appliance (Accelerator on IAS) or native on IBM Z (Accelerator on IBM Z) selecting the right choice

    The Db2 Analytics Accelerator for z/OS edition 7.1 offers the selection to deploy the contour component that best suits an organization’s requirements:

  • Db2 Analytics Accelerator on IAS permits organizations to install on the IBM built-in Analytics device appliance. This pre-configured providing comprises hardware (compute, storage, and networking) and software for easy deployment, management, and exorbitant efficiency. It also offers protection-wealthy, elastic and elastic information storage it's both handy to deploy and control.
  • Db2 Analytics Accelerator on IBM Z makes it possible for businesses to deploy at once on the IBM Z mainframe, within a cozy carrier Container leveraging built-in Facility for Linux (IFL) processors. This permits for deeper integration with the IBM Z infrastructure. This option can additionally present bendy capacity to respond to top analytic workload requirements whereas assembly SLAs. It helps a subset of SQL, executable in Db2 for z/OS. Basing the Accelerator on Db2 Warehouse permits extended disburse of the supported SQL on account of better SQL compatibility throughout the Db2 family unit.
  • both deployment alternate options are in response to IBM’s analytical engine, Db2 Warehouse. This helps assure a uniform adventure with one API and database engine. It permits corporations to accomplish investments as soon as in enabling their functions and workloads for the Accelerator and then transition without problems between deployment alternate options. The IBM Db2 Warehouse offers the following benefits:

  • more advantageous SQL compatibility throughout the entire Db2 household of products.
  • Columnar expertise delivering quicker performance for a lot of analytic queries than previous versions.
  • Containerized strategy can facilitate sooner, more convenient integration with different applied sciences and processes.
  • Deployment on IAS

    IBM Db2 Analytics Accelerator on IAS is a next-era hardware equipment. It provides its components out of the field, including optimized hardware and software. This deployment alternative provides a balanced, advanced, efficiency-optimized configuration. The hardware comprises the rack, the physical servers and storage. it's in keeping with IBM vim hardware and is optimized for fee/efficiency. The application stack comprises the Linux working gadget, Docker application, Docker container and infrastructure administration amenities.

    Deployment on IBM Z

    IBM Db2 Analytics Accelerator on IBM Z circumstances can also exist deployed without delay by the disburse of a download & Go strategy. Deploying the Accelerator on IBM Z applications the application stack into an IBM relaxed carrier Container (SSC) analytic partition (LPAR). This helps bring a self-managed appliance operating in a SSC LPAR that will also exist deployed in minutes.

    assorted at ease service Containers can participate the selfsame IFLs. multiple Accelerators, for this reason, can participate the equal hardware resources. This can exist a satisfactory option for a couple of production, and examine/development cases, which may exist provisioned and re-provisioned as crucial.

    The Accelerator on IBM Z integrates into a firm’s IBM Z ambiance and leverages the close LPAR-reminiscence and CPU management approaches. This approach also leverages the company’s own disk to reserve Accelerator-aspect information. This alternative is for organizations that are looking to buy skills of IBM Z amenities for activities similar to catastrophe restoration and makes it possible for for deeper integration with the IBM Z infrastructure.

    abstract and subsequent Steps

    When real-time perception concerns, IBM Z, together with Db2 for z/OS and the Db2 Analytics Accelerator, can advocate convey an impressive transaction and analytical environment.

    it may aid groups buy edge of their industry information where it originates to toil to power towering beget an result on decisions whereas minimizing latency, simplifying infrastructure, assisting to in the reduction of the can freight of such IT infrastructure and enhancing data security. it may possibly abet flip information into insight, and perception into probability to give near actual-time solutions to one of the most crucial questions.

    To exist taught greater about IBM Db2 Analytics Accelerator version 7.1, click privilege here.

    Stephen Astorino,VP of development, Hybrid Cloud, z Analytics and Canada Lab Director IBM Analytics

    observe me: @astorino_steven


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    Associate: IBM i 7.1 Administration

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    Admin Alert: When Was The terminal Time That Library Got Backed Up And More | killexams.com true questions and Pass4sure dumps

    This week, I’ll cover some original information about IBM i library backups, order you how to specify which TCP/IP servers start whenever TCP/IP is started, and demonstrate a second technique for preventing unauthorized FTP access to your server. Let’s rep started.

    Determining The terminal Time A User Library Was Backed Up

    Checking the terminal time a user library was backed up is easy. You can check it from the green-screen by running the following parade Library Backup List (DSPBCKUP) command.

    DSPBCKUPL BCKUPL(*LIB)

    This command will parade a screen that looks something devotion this.

    (Click graphic to enlarge.)

    This shows the terminal date each user library was backed up (the terminal Backup column) and whether the library has been changed since the terminal backup (the Changed column). This is handy when you’re running a customized nightly backup program, so that you can ensure you’re saving every separate germane user data.

    You can also disburse System i Navigator (OpsNav) to find the terminal saved date for an IBM i library by opening the File Systems→Integrated File System→QSYS.LIB path to list out every separate your native DB2 IBM i libraries. Right-click on the library designation you want to check, and then click on the Properties option on the pop-up menu that appears. Click on the deliver tab on the library Properties screen that appears, and the system will expose you the terminal date and time that the library was saved. Your Properties screen will search for something devotion this.

    (Click graphic to enlarge.)

    The only distinction between this information and the green-screen DSPBCKUPL information is that the green-screen will order you whether the library has been updated since the terminal save. OpsNav doesn’t provide that information. Other than that, the two options expose the exact selfsame information.

    Specifying Which TCP/IP Servers Start When TCP/IP Starts

    Whenever TCP/IP is started, the IBM i operating system will also start every separate TCP/IP servers that are configured to start when TCP/IP is started. This is helpful because you don’t beget to specifically start your TCP/IP servers in your system startup program every time you IPL the system or the system restarts after a plenary system backup (GO SAVE, option 21).

    Your TCP/IP server startup list can exist viewed and maintained through System i Navigator (OpsNav). finish the following to view and update this list in the OpsNav version that comes with IBM i Access for Windows 7.1.

    1. In your target system in OpsNav, right-click on the Network→TCP/IP Configuration node. Select Properties from the pop-up menu that appears.

    2. This will bring up the following TCP/IP Configuration Properties screen for your partition. Select the Servers to Start tab.

    (Click graphic to enlarge.)

    3. This screen shows every separate the TCP/IP servers that can exist started on your system. Any server that has a checkmark next to it will restart whenever TCP/IP is started. Review the list and add or remove checkmarks next to the servers you want to associate with TCP/IP starting.

    And that’s how easy it is to specify which TCP/IP servers should exist started whenever TCP/IP is started.

    Controlling FTP Access Through OpsNav

    In my January 23 column, I presented a technique for stopping unauthorized user profiles from FTPing to your IBM i machine. After posting that column, reader and IBM i guru Patrick Botz emailed me with another pass to shut off FTP access from a client machine. Patrick’s technique is much easier to implement than coding a custom-written FTP exit point, as I described in the previous article. Here’s how it works.

    This technique involves using some predefined FTP configuration parameters in the System i Navigator program that comes with IBM i Access for Windows 7.1. These parameters are defined under the Host Applications tab of the OpsNav Application Administration function. You can open the Application Administration role by right-clicking on your partition designation in OpsNav and selecting the Host Applications tab. You’ll survey a screen that looks devotion this.

    (Click graphic to enlarge.)

    To control who can and cannot start an FTP session with this server, open the TCP/IP Utilities for iSeries→File Transfer Protocol (FTP)→FTP Server path in this Windows dialogue box. Highlight the Logon Server entry and click on the Customize button to bring up the following Customize Access screen for controlling FTP access.

    (Click graphic to enlarge.)

    Looking at this screen, you’ll survey two boxes that you can disburse to: 1) define which user profile names can start an FTP session with your partition (the Access Allowed area); or 2) define which user profile names cannot start an FTP session on your partition (the Access Denied area). Whenever a user profile designation is added to the Access Denied area, the IBM i operating system will reject any FTP user logon requests coming from that user. You can add users to the Access Denied list by opening the every separate Users node under Users and Group, selecting the user you want to gainsay FTP access to, and clicking on the Add→ button next to the Access denied area. In this example, I’m telling the FTP server to reject any logon attempts coming from the “joeh” user. After I click on OK, “joeh” will no longer exist able to start an FTP session with my IBM i partition.

    Similarly, you can add users to the FTP Access Allowed list by highlighting the user designation and then clicking on the Add→ button next to the Access Allowed area. But exist alert that to set up an Allowed Access list, you beget to spin off the Default Access check box on the Customize Access screen. Default access specifies that any users that are not explicitly defined in the Access Allowed or Access denied lists will exist able to start an FTP session. You can completely lock down FTP access for any unauthorized users by turning off the Default access check box AND by adding every separate the authorized FTP users to the FTP Access Allowed list. With that configuration, only authorized users can access your system.

    If you want to add users to either the Access Allowed or Access Denied list without constantly updating that list, you can easily finish that by specifying group profile names in each list by using the following technique.

  • Create an i OS user group called FTPALLOW or FTPDENY, depending on whether you want to allow or gainsay FTP access to the proper group. Add any users that you want to allow or gainsay FTP access for to the proper group.
  • On the Customize Access screen for FTP Logons, open the Groups node under the Users and Groups area to list out every separate the user groups on your partition. If you want to specify a group of users who are allowed to disburse FTP, specify the FTPALLOW user group designation in the FTP Access Allowed list and spin off the Default access check box.
  • If you want to specify a group of users who will always exist denied FTP access, add the FTPDENY user group to the FTP Access Denied list area and leave the Default access check box on. Any users not in the FTPDENY group will not exist allowed to start an FTP session.
  • Click OK to deliver your FTP logon settings.
  • While writing a custom-written exit point program as I demonstrated in my previous article will also allow you to lock down FTP access, I find this technique is much more elegant and easy to implement for allowing or denying FTP access. Thanks again to Patrick Botz for telling me about it.

    Joe Hertvik is the owner of Hertvik industry Services, a service company that provides written marketing content and presentation services for the computer industry, including white papers, case studies, and other marketing material. Email Joe for a free quote for any upcoming projects. He also runs a data headquarters for two companies outside Chicago. Joe is a contributing editor for IT Jungle and has written the Admin Alert column since 2002.

    RELATED STORY

    Stopping Unauthorized Users From FTPing To Your IBM i

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    Password Management Market Size, Future Scope, Demands and Projected Industry Growth Forecast to 2028 | killexams.com true questions and Pass4sure dumps

    Mar 28, 2019 (WiredRelease via COMTEX) -- Passwords used as an authentication instrument and denies unauthorized access. Passwords helps to protect confidential information such as emails, insurance details, bank accounts, educational record, medical records, etc. A password manager also known as shared or sensitive password management or password vaulting is a software application or hardware device used to store and manage user's passwords and sturdy passwords. every separate the passwords are stored in encrypted format and user exigency to create master password to access every separate the stored passwords.

    The research report on Global Password Management Market 2019 keenly analyzes significant features of the industry. The analysis servers market size, latest trends, drivers, threats, opportunities, as well as key market segments. It is based on past data and present market needs. Also, involve sunder industry approaches accepted by the determination makers. That intensifies growth and accomplish a remarkable stand in the industry. The Password Management market will grow with a significant CAGR between 2019 to 2028. The report segregates the complete market on the basis of key players, geographical areas, and segments.

    Growing awareness of password management among enterprises and individuals, owing to increasing number of password protected accounts such as social, financial, medical, and official, which is a key factor expected to drive growth of the global market over the forecast period. In addition, increasing demand for password management solution among several industries, owing to increasing number of involved systems, regulatory, and risk management environment in organization is another factor expected to further fuels growth of the target market.

    The study includes basic information about the product such as Password Management scope, segmentation, outlook. Likewise, it includes supply-demand static, investment feasibleness, and factors that constrain the growth of an industry. Especially, it offers product demand, yearly revenue and growth facet of the industry.

    Click to access sample pages? https://marketresearch.biz/report/password-management-market/request-sample

    Distinct Segments of Global Password Management Market:

    Segmentation by type: Self-service password management, Privileged user password management. Segmentation by access: Mobile devices, Desktops & laptops, Voice enabled password systems, Others. Segmentation by organization: small & medium organization, Enterprise. Segmentation by end-user: BFSI, Education, Healthcare, Manufacturing, Public sector & utilities, Retail & wholesale distribution, Telecom & IT, Others

    Major leaders of the world Password Management market are:

    CA Technologies, Quest Software Inc, NetIQ Corporation, Hitachi ID Systems Inc, IBM Corporation, Microsoft Corporation, SailPoint Technologies Inc, Avatier Corporation, Courion Corp., Dell SonicWALL Inc

    Regional Analysis:

    The market in North America dominates the target market in terms of revenue over the forecast period, owing to increasing applications of password management solutions across various end-use industry. The market in Asia Pacific is expected to register significant participate in the target market in terms of revenue over the forecast period, owing to technological advancements and developing infrastructure in developing countries such as India, China, and Japan.

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    Midstream Credit Ratings: Making The (Investment) Grade | killexams.com true questions and Pass4sure dumps

    Summary

    Midstream companies are focused on preserving or attaining investment-grade credit ratings in order to secure lower borrowing costs when pile projects.

    Many midstream companies crow investment-grade credit ratings based on the constituents of their AMNA Index, a broad composite of North American midstream companies.

    Alerian’s midstream indices are heavily weighted towards names with investment-grade credit ratings.

    Midstream credit ratings are a recurring topic in Alerian Insights (2017, 2016, 2015 3-part series) - not because we're too lazy to account of original topics (OK, that may exist a small Part of the reason), but because credit ratings are necessary for midstream companies as prolific project builders. Often, midstream projects are financed with 50% debt. A better credit rating means cheaper debt and better project returns, hence the desirability of investment-grade credit ratings for midstream companies.

    In this piece, we'll search for at credit ratings for the 59 constituents of the Alerian Midstream Energy Index (AMNA), a broad-based composite of North American energy infrastructure companies. We'll also search for at the investment-grade weightings for five of their midstream indices. Before they rep into those details, we'll briefly revisit why credit ratings matter.

    What is the value of an investment-grade rating?

    For midstream companies, an investment-grade credit rating is not just a feather in the cap or a perceived stamp of approval from a rating agency. Rather, an investment-grade credit rating means saving cash. For example, Andeavor Logistics (ANDX) anticipated more than $25 million in savings for annual interest costs as a result of refinancing its debt in late 2017 after achieving an investment-grade rating. Tallgrass Energy (TGE) and Rockies Express Pipeline LLC received investment-grade credit ratings from Fitch in September, and TGE eminent in its October presentation that a potential improvement to its credit rating would reduce its cost of debt. TGE also stated in the presentation that S&P had recently revised its outlook to positive watch. For midstream companies, preserving or attaining an investment-grade credit rating is clearly important.

    Making the grade: midstream credit ratings and takeaways.

    The table below includes S&P credit ratings for the midstream companies included in the AMNA index as well as capitulate and market capitalization. They focus on S&P ratings because those are used to determine the investment-grade weightings1 for their indices.

    Of the 59 constituents in the AMNA index, 41 names beget ratings from S&P. Of those 41 names with ratings, 22 companies beget investment-grade ratings (BBB- or better). In other words, of the companies with ratings, more names beget investment-grade ratings than below investment-grade ratings. The unconcerned market cap for investment-grade rated names is ~$23 billion, but the compass is quite wide: from Enbridge (ENB) at $98 billion to TC PipeLines (TCP) with a market cap below $2.3 billion. One would expect investment-grade companies to beget lower yields (cheaper equity). The unconcerned capitulate for investment-grade names was 7.1% as of February 28, compared to an unconcerned capitulate of 9.9% for those names with ratings below investment grade and paying a dividend. There is a wide compass of yields and market caps among the names without S&P ratings, which include TGE despite its investment-grade rating from Fitch and Plains GP Holdings (PAGP), although Plains every separate American (PAA) has an investment-grade rating.

    What is the investment-grade weighting in Alerian indices?

    The chart below shows the weighting of constituents with investment-grade credit ratings from S&P in five of their midstream indices. Given midstream equity yields shown in orange below, investors may expect lower credit trait for the sector than is the case. One factor in the heavy weighting of investment-grade companies for midstream is the barbell nature of market capitalizations in this space. The indices below are weighted by float-adjusted market capitalization with a 10% cap. As an example, seven companies of the 59 constituents in the AMNA Index account for almost three-fourths of the investment-grade weighting for the index.

    As shown in the chart below, AMNA, their composite midstream index, has the highest weighting of investment-grade companies at 83.3%, followed by the Alerian MLP Infrastructure Index (AMZI), which includes energy infrastructure MLPs. The Alerian US Midstream Energy Index (AMUS) is similar to AMNA but only includes US energy infrastructure companies. Finally, the Alerian Midstream Energy Select Index (AMEI) is the investable version of the AMNA Index. AMEI caps MLPs at 25% and includes a liquidity requirement. The Alerian MLP Index (AMZ) has the lowest investment-grade weighting at 70.4%. The AMZ consists of energy infrastructure MLPs but is broader than the AMZI (the AMZ has twelve more constituents). One may expect that the index with the highest investment-grade weighting (AMNA) has the lowest yield, and the index with the lowest investment-grade weighting (AMZ) has the highest yield. For a helpful infographic distinguishing these five indices, delight survey the appendix to this piece.

    Bottom line

    Investment-grade credit ratings are necessary to midstream companies as a means to lower borrowing costs - which, in turn, supports better project returns. Midstream's reliance on debt markets for financing growth projects and the barbell nature of market capitalizations result in a heavy weighting to investment-grade companies across their midstream indices.

    Appendix

    Footnote

    1 To exist clear, an investment-grade rating is not a criteria for inclusion in their indices, but they report investment-grade weightings for their indices in fact sheets, as it is a metric frequently requested by investors.

    Disclosure: © Alerian 2019. every separate rights reserved. This material is reproduced with the prior consent of Alerian. It is provided as universal information only and should not exist taken as investment advice. Employees of Alerian are prohibited from owning individual MLPs. For more information on Alerian and to survey their plenary disclaimer, visit http://www.alerian.com/disclaimers.

    Stacey Morris is the Director of Research at Alerian, which equips investors to accomplish informed decisions about Master Limited Partnerships (MLPs) and energy infrastructure. Ms. Morris engages with the investment community to extend awareness of the Alerian Index train and advocate broader understanding of the role that midstream assets play in North American energy markets. Ms. Morris was previously the Investor Relations Manager for Alon USA Energy, overseeing investor communications for the corporation and its variable distribution MLP, Alon USA Partners. Prior to Alon, she covered the integrated majors and refiners at Raymond James as a Senior Associate in the firm's Equity Research Division. Ms. Morris graduated summa cum laude with a Bachelor of Science in industry Administration from Stetson University, and is a CFA charterholder.



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