S&P changes Allete view

S&P said it revised its outlook on Allete Inc. to negative from stable and affirmed the ratings on the company, including the BBB+ issuer credit rating and the A-2 short-term rating on the company's commercial paper.

The agency said the outlook revision follows the Minnesota Public Utilities Commission's decision on Allete's general rate case to authorize a rate increase of close to $13 million for the company's electric utility division Minnesota Power.

“We view the decision as indicative of the company's regulatory risk, which we view as average relative to peers,” S&P said in a news release.

In addition, the agency said it expects the recently revised U.S. corporate tax code to reduce the utility's revenue requirement over the next 12 months, potentially straining the company's cash flows.

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