Fitch lifts Otter Tail

Fitch Ratings said it upgraded the long-term issuer default ratings of both Otter Tail Corp. (OTTR) and its regulated electric utility subsidiary, Otter Tail Power Co. (OTP) to BBB from BBB- and to BBB+ from BBB, respectively. The agency also raised the senior unsecured ratings for OTTR and OTP to BBB from BBB- and to A- from BBB+.

“The upgrades for both OTTR and OTP reflect strong operating performance and strengthening credit metrics and expectations that they will continue to be robust through the 2023-2025 financial forecast. For OTTR, Fitch projects FFO leverage to average 3.1x through 2023-2027 and at OTP, FFO leverage is projected average 4.2x through the same period. For OTTR and OTP, these credit measures support the one-notch upgrades of their IDR's to BBB and BBB+, respectively.

The outlook for both companies is stable.

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