Moody's downgrades Scana

Moody's Investors Service said it downgraded Scana Corp.'s senior unsecured debt and issuer rating to Baa3 from Baa2, subordinated debt to Ba1 from Baa3 and short-term rating for commercial paper to prime-3 from prime-2.

Moody's also said it downgraded South Carolina Electric & Gas Co.'s senior unsecured debt and issuer rating to Baa2 from Baa1, as well as the senior unsecured debt rating of affiliate South Carolina Generating Co. Inc. (Genco) to Baa3 from Baa2.

The outlook is stable.

The downgrade considers the heightened risk associated with a large nuclear construction program extending through 2019, which is expected to be about 50% debt-financed and will pressure future financial metrics, Moody's said.

The ratings also reflect the credit-supportive regulatory regimes in all states of operation, legislation in South Carolina that is highly supportive of nuclear construction, the sizeable debt load at the parent company and an ongoing need to access capital markets, the agency said.

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