Moody's downgrades ConEd

Moody's Investors Service said it downgraded the long-term ratings of Consolidated Edison, Inc. to Baa2 from Baa1 and its primary subsidiary Consolidated Edison Co. of New York, Inc. to Baa1 from A3 due to the expectation for weaker financial metrics at Consolidated Edison Co. and the structural subordination of Consolidated Edison Inc.’s debt obligations vis-a-vis its subsidiaries. Moody's also affirmed the long-term ratings of Orange and Rockland Utilities, Inc.

The outlooks for the two Consolidated Edisons are stable. The outlook for Orange and Rockland is negative.

"Despite $1.7 billion of planned equity through 2022, ConEd's key financial credit ratios will decline with up to $3.8 billion of new debt through 2022 and weaker cash flow at Cecony," said Ryan Wobbrock, a Moody’s vice president and senior credit officer, in a press release. "Following the approval of a recent rate order, Cecony is expected to generate a ratio of cash flow to debt between 14-16% over the next three years, which is in-line with Baa1 peer ratios."

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