S&P trims Kentucky Power

S&P said it lowered its ratings on Kentucky Power Co. (KPCo) and its debt by a notch to BBB from BBB+, after the company’s parent, American Electric Power Co. Inc., and Liberty Utilities Co. mutually agreed to terminate the sale of KPCo. The agency also removed KPCo’s ratings from CreditWatch where they were placed with negative implications on Oct. 28, 2021. The outlook is stable for AEP and KPCo.

The agency affirmed AEP’s ratings.

In a press release, S&P noted that KPCo’s stand-alone profile was weaker and, “In 2021 and 2022, FFO to debt was 11.6% and 11.4%, respectively, significantly below our downgrade threshold of 15%. We reflect this weakening in financial measures by applying a negative comparable ratings analysis modifier. Going forward, we expect a modest improvement to stand-alone financial measures, reflecting rate case increases and a potential securitization, pending legislative and regulatory approvals.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.