Moody’s upgrades Entergy Arkansas to Baa1

Moody's Investors Service said it upgraded the long-term ratings of Entergy Arkansas, Inc. (EAI) to Baa1 from Baa2.

The outlook is stable.

"Entergy Arkansas' newly adopted formula rate plan (FRP) will enhance the predictability and stability of the Arkansas regulatory framework and the company's financial profile over the next five years" Moody’s assistant vice president Ryan Wobbrock said in a news release.

"With forward-looking rates and a 9.75% allowed return on equity, we think that EAI will be able to generate a steady ratio of cash flow to debt approaching 20%."

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