S&P turns Otter Tail view to stable

S&P said it revised its outlook for Otter Tail Corp. to stable from negative and affirmed the ratings for the company and its subsidiary Otter Tail Power Co.

“We revised our financial risk profile assessment upward to intermediate from significant, reflecting FFO to debt we expect at 26%-28% beginning in 2023. We also revised the comparable rating analysis modifier to neutral from positive because we expect the company's financial measures will consistently reflect the middle of the range for its new financial risk profile category,” the agency said in a press release.

S&P noted the company’s funds from operations-to-debt ratio improved to about 30% in 2021, up from about 19% in 2020, and forecasts its 2022 FFO to debt to be about 32% before moderating to 26%-28% beginning in 2023.

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