Moody's lifts Avista

Moody's Investors Service said it upgraded Avista Corp.'s senior unsecured rating to Baa3 from Ba1, concluding a review for upgrade that began on June 22.

The outlook is stable.

Moody's said the upgrades reflect the sale of its unregulated subsidiary Avista Energy, Inc. and the use of proceeds to reduce debt.

"Historically, it has been Moody's opinion that Avista needed to maintain stronger credit metrics than might otherwise be necessary for its former ratings in light of its higher degree of business risk; however, without Avista Energy, the company's current and expected key credit metrics should be adequate to support a Baa3 senior unsecured rating," Kevin Rose, vice president and senior analyst, said in a written statement.

The upgrade also considers a recent agreement on a rate case, which the agency said should provide the company with reasonable rate relief.

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