S&P changes Entergy to stable

S&P said it revised its outlooks on Entergy Corp. and its operating subsidiaries to stable from positive.

The subsidiaries are Entergy Arkansas Inc., Entergy Louisiana LLC, Entergy Mississippi Inc., Entergy New Orleans Inc., Entergy Texas Inc. and System Energy Resources Inc.

At the same time, the agency affirmed the ratings, including the BBB+ issuer credit ratings, on Entergy and its subsidiaries.

“The outlook revision is based on the company's revised capital spending plan that, financed with higher debt leverage and combined with the negative effect of federal tax reform, is expected to weaken Entergy's financial measures to about 14% adjusted FFO to debt,” S&P said in a news release.

“Although the company expects both the recovery of invested costs through the regulatory process and higher cash flows, we believe the reliance on debt to finance capital spending will strain financial measures.”

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