S&P changes Pinnacle West view

S&P said it revised its outlook on Pinnacle West Capital Corp. and Arizona Public Service Co. to stable from positive.

At the same time, the agency affirmed the ratings, including the A- long-term issuer credit ratings, the A-2 short-term ratings, the BBB+ rating on Pinnacle’s senior unsecured notes and the A- issue ratings on Arizona Public’s senior unsecured debt.

“The outlook revision reflects a view of a modest weakening to PWCC's financial measures as a result of robust capital spending, U.S. tax reform and rising distributed generation within the company's service territory that we do not expect to be offset by a material change to the company's capital structure,” S&P said in a news release.

“Accordingly, we expect that both PWCC and APS will have financial measures that more consistently reflect the higher end of the range for the significant financial risk profile category.”

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