S&P changes Great Plains Energy to positive

S&P said it affirmed the ratings, including the BBB+ issuer credit ratings, on Great Plains Energy Inc. and subsidiaries Kansas City Power & Light Co. and KCP&L Greater Missouri Operations Co., and revised the outlooks to positive from negative.

Great Plains Energy and Westar Energy Inc.'s revised merger agreement is structured as an all-stock transaction. Under this agreement, the companies will combine into a new holding company. Following completion of the merger, Westar shareholders are expected to own about 52.5% and Great Plains Energy shareholders about 47.5% of the new holding company.

S&P said the positive outlook on Great Plains Energy and its subsidiaries reflects the base-case scenario that the combined entity's regulated utility operations will continue to generate sufficient cash flow to consistently achieve financial measures that support FFO to debt in the 17%-19% range from 2019 through 2021.

This range of FFO to debt places the company comfortably in the midpoint of the agency’s significant financial risk profile assessment.

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