S&P turns Xcel outlook to negative

S&P said it revised its outlook for Xcel Energy Inc., Southwestern Public Service Co. (SPS) Northern States Power Co. (NSP-M) to negative from stable and affirmed the A- issuer credit ratings on Xcel and SPS and the A issuer credit rating on NSP-M.

“The Texas A&M Forest Service reported that the wildfires have burned over 1 million acres and have resulted in fatalities, but are only partly contained. Although SPS' possible involvement in the wildfires is unclear and subject to potential investigation and disclosures, the scale and severity of the Texas Panhandle wildfires demonstrates higher wildfire risk for SPS and parent Xcel than previously anticipated in Texas. These wildfires come as Xcel also continues to deal with the impacts related to the Marshall Fire in Colorado,” S&P said in a press release.

The agency warned that Xcel’s credit quality could deteriorate because of higher wildfire and legal risks.

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