Moody’s shifts AEP view to negative

Moody’s Investors Service said it revised the outlook for American Electric Power Co., Inc. to negative from stable following a review of the company’s updated capital and financial plans.

“AEP’s negative rating outlook reflects Moody’s expectation that the combination of lower cash flow due to tax reform, ongoing debt funded capital expenditures and several relatively weak economic service territories will increase pressure on financial credit metrics,” said Moody’s in a press release.

Moody’s said it also affirmed the ratings of AEP, including its Baa1 senior unsecured, Baa2 junior subordinate ratings.

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