Fitch lowers Pinnacle West view to negative

Fitch Ratings said it affirmed the long-term issuer default ratings of both Pinnacle West Capital Corp. and its vertically integrated electric utility subsidiary, Arizona Public Service Co., at A-.

The outlooks also were revised to negative from stable on both companies.

Fitch also said it affirmed the commercial-paper and short-term ratings of both companies at F2.

The ratings reflect solid operating performance at the electric utility, strong credit metrics, healthy and improving service territory economy and assume no material increase in parent level debt through the forecast period, the agency said.

The negative outlook reflects heightened regulatory risk stemming from an increasingly politicized regulatory environment in Arizona with potential negative implications for credit quality, Fitch said.

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