S&P ups Otter Tail view to positive

S&P said it revised its outlook on Otter Tail Corp. and its subsidiary Otter Tail Power Co. to positive from stable.

At the same time, S&P affirmed its ratings, including the BBB issuer credit ratings, on both companies.

“The positive rating outlook reflects Otter Tail's continued strong financial performance and the possibility for an upgrade should its funds from operations (FFO) to debt consistently exceed 22%, which is consistent with the higher end of the range for the company's financial risk profile assessment,” S&P said in a news release.

“Furthermore, Otter Tail continues to execute on its strategic focus of primarily growing through its regulated utilities. This reflects our expectations that the vast majority of the company's capital spending will be for utility growth opportunities and that the nonutility businesses will primarily be limited to organic growth.”

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