S&P rates Northwestern Energy BBB

S&P said it assigned BBB ratings to NorthWestern Energy Group Inc. (NWEG) a new public holding company, and its new operating utility NorthWestern Energy Public Service Corp. (NPS) Both companies were created by NorthWestern Corp. (NWC). The outlooks are stable.

“We assess NWEG's business risk profile as strong, reflecting its low-risk regulated electric and natural gas utility operations, effective management of regulatory risk, average size of customers and geographic diversity, partially offset by its increasing exposure to wildfires in Montana and relatively high reliance on coal-fired generation,” S&P said in a press release.

The agency added, “The stable outlooks for NWEG and its subsidiaries reflect our expectation that consolidated financial measures will remain supportive of its current rating such that funds from operations (FFO) to debt reflect 15%-16% with no increase in business risk.”

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