Fitch changes Scana watch to evolving

Fitch Ratings said it revised the rating watch on the long-term issuer default ratings of Scana Corp. (BB+) and its subsidiaries South Carolina Electric & Gas Co. (SCE&G; BBB-) and Public Service Co. of North Carolina (BBB-) to evolving from negative following the announcement of the proposed merger into Dominion Energy, Inc. (BBB+).

Fitch said it expects to resolve the watch close to completion of the merger transaction.

“A successful closing of the merger, combined with approval of the proposed nuclear solution, would likely lead to a one notch upgrade of SCE&G's ratings,” the agency said in a news release.

“Fitch would consider a two-notch upgrade of SCE&G's ratings if the regulatory construct improved sufficiently and a clear path to adjusted debt to EBITDA declining below 3.5x existed.”

© 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.