S&P cuts Kentucky Power

S&P said it lowered Kentucky Power Co.’s issuer and senior unsecured issue-level ratings to BBB+ from A- and placed them on CreditWatch with negative implications.

“We revised our assessment of KPCo's group status to moderately strategic from core. Our reassessment of KPCo's group status incorporates its parent's ongoing strategic review. Although KPCo may be sold, its continued to access the AEP money pool, which indicates it is receiving some level of group support,” S&P said in a press release.

The reassessment follows the company’s parent American Electric Power Co. Inc.’s decision that it decided to sell Kentucky Power, the agency said.

“The CreditWatch placement reflects AEP's announcement that it will sell KPCo, though the company offered no indication of the ultimate buyer or its credit quality. Once we receive more clarity about the timing of the sale and the ultimate buyer, we will update our CreditWatch placement,” S&P said.

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