S&P cuts Xcel Energy, units

S&P said it lowered its issuer ratings on Xcel Energy Inc. to BBB- from A-, and its subsidiaries Southwestern Public Service Co. (SPS) to BBB from A- and Northern States Power Co. (NSP-M) to A- from A. The agency affirmed the A- issuer credit ratings on Northern States Power Wisconsin Co. (NSP-W) and Public Service Co. of Colorado (PSCo). It revised the outlook on NSP-W to negative.

The outlook is negative for Xcel Energy and all its subsidiaries is now negative.

For SPS, the agency said it cut the senior secured debt rating to A- with a 1+ recovery rating, and the senior unsecured debt rating to BBB. The two-notch downgrade reflects the company's growing exposure to major wildfires.

“Greater wildfire risk than anticipated contributed to our one-notch downgrade of Xcel. We believe the scale and severity of the wildfires in the Texas panhandle highlight Xcel's increasing wildfire exposure. Our view reflects the company's acknowledgment that its power lines appear to have been involved in the ignition of the largest wildfire in Texas' history, which has burned over one million acres, damaged at least 64 occupied homes, and resulted in two fatalities,” S&P said in a press release.

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