Fitch lifts Westar, Kansas Gas to BBB+

Fitch Ratings said it upgraded the long-term issuer default ratings for Westar Energy, Inc. and its utility operating subsidiary, Kansas Gas and Electric Co. (KG&E), to BBB+.

The outlooks were revised to stable from positive.

Fitch said the upgrade is supported by improvement in credit metrics over the rating horizon, including debt to EBITDAR declining to 3.5 times by 2017 in Fitch's base case.

The upgrade also considers satisfactory resolution of Westar’s latest general rate case, lower capex spend and equity issuance earlier in 2015. The Kansas Corp. Commission adopted a settlement in September 2015 authorizing a net rate base increase of $78 million, which represents about a mid-9% allowed ROE in Fitch's estimate.

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