S&P upgrades Pinnacle West

Standard & Poor's said it raised the corporate credit rating on Arizona Public Service Co. and its parent company, Pinnacle West Capital Corp., to A- from BBB+.

The outlook is stable.

The agency also said it raised the rating on Arizona Public Service Co.'s unsecured debt to A- from BBB+ and removed the ratings from CreditWatch, where they were placed with positive implications in November.

"We based our upgrade primarily on a reassessment of the consolidated financial risk against our utilities medial volatility benchmarks, which recognize the lower volatility of cash flows in the regulated utility sector," said Michael Ferguson, an S&P analyst.

Arizona Public Service is deemed to be a core entity that is integral to the Pinnacle West group and is therefore rated at the same level as Pinnacle West, Ferguson said.

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