Fitch cuts some Scottish Power ratings

Fitch Ratings said it affirmed Scottish Power UK plc's senior unsecured rating at A and downgraded the short-term rating to F2 from F1. The agency also downgraded Scottish Power plc's senior unsecured rating to BBB+ from A- and affirmed its short-term rating at F2.

The outlook is stable.

Fitch said the rating of Scottish Power UK reflects the general stability of its business model. Most of its profits and cashflows are derived from its two regulated regional electricity distribution businesses SP Distribution and SP Manweb and its regional high voltage electricity transmission business SP Transmission.

Scottish Power UK's electricity generation and retail businesses provide a natural hedge for each other's exposure to wholesale electricity prices, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.