Fitch ups Indiana Michigan Power

Fitch Ratings said it upgraded Indiana Michigan Power Co.’s issuer default rating and the senior unsecured rating to A- and A from BBB+ and A-, respectively.

“As a result of adequate rate relief, including the ability to utilize a forecast test year, IMPCo's credit metrics remained stable despite significant capex. IMPCo's FFO leverage is expected to be in the range of 3.5x -4x, which is consistent with an A- integrated utility,” Fitch said in a press release.

The agency also changed the outlook for Ohio Power Co. to stable from negative.

The outlook is based on the expectation that parent American Electric Power Co. will manage its capital allocation policy to support credit metrics consistent with the company's current A- IDR, Fitch said.

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