Moody's rates Otter Tail notes Ba1

Moody's Investors Service said it assigned a rating of Ba1 to about $100 million of senior unsecured (non-guaranteed) notes of Otter Tail Corp. to be issued by its parent holding company. Moody's also affirmed its Baa3 senior unsecured rating and its A3 ratings for the senior unsecured debt obligations of its utility subsidiary, Otter Tail Power Co.

The outlook remains stable.

The rating reflects the notes' position within the consolidated capital structure, including their structurally subordinate position to debt already held, Moody's said.

The ratings also consider the fact that about half of the company's consolidated cash flows are expected to be generated by Otter Tail, with the remaining half generated by its non-regulated subsidiaries, Moody's said.

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