Moody’s boosts ConEd, Cecony

Moody's Investors Service said it upgraded the long-term ratings of Consolidated Edison, Inc. (ConEd), including its senior unsecured rating to Baa1 from Baa2 and its primary utility subsidiary Consolidated Edison Co. of New York, Inc. (Cecony) including its senior unsecured rating to A3 from Baa1, because of better regulatory support for utility cost recovery and our expectation for improved financial metrics.

The agency also changed the outlooks for both companies to stable from positive.

"Recent regulatory support provided by the New York Public Service Commission (Nypsc) will result in roughly $2.2 billion of revenue increases for ConEd, improving the company's cost recovery and financial metrics," said Ryan Wobbrock, a Moody’s vice president and senior credit officer, in a press release.

"Consecutive rate orders for Cecony's electric, gas and steam businesses also mark a period of improved political, regulatory and stakeholder relationships for the companies – an important consideration as the cost of energy transition increases in the state," added Wobbrock.

The outlook reflects improvements in the regulatory support for utility cost recovery and a forecast that key credit metrics, such as the ratio of CFO pre-WC to debt, will be above 17% during the three-year rate plan.

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