Moody’s rates Scana, subsidiaries loans Baa3, A3, Baa2

Moody's Investors Service said it affirmed the ratings of Scana Corp. (Baa3) and its two primary subsidiaries South Carolina Electric & Gas Co. (Baa2), and Public Service Co. of North Carolina, Inc. (A3) and changed the outlooks for each company to stable from negative.

Concurrently, the agency assigned ratings to a total of $2 billion of unsecured credit facilities at Scana ($400 million, Baa3), Public Service ($200 million, A3), South Carolina Electric ($900 million, Baa2) and South Carolina Fuel Co. Inc. ($500 million, Baa2). The South Carolina Fuel credit facility is guaranteed by SCE&G.

Moody’s said the ratings and stable outlooks reflect several risk mitigating developments that have occurred over the past year in conjunction with South Carolina Electric’s construction of the V.C. Summer new nuclear units.

The favorable developments started with an October 2015 settlement with the engineering, procurement and construction (EPC) consortium that resolved prior disputes, improved project terms, and provided an option to fix future project costs – thus significantly reducing the company's exposure to additional cost overruns, the agency added.

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