S&P puts FirstEnergy on positive watch

S&P said it revised its CreditWatch with negative implications to positive on FirstEnergy Corp. and its subsidiaries.

The revision follows the company entering a three year deferred prosecution agreement with the U.S. Attorney's office for the Southern District of Ohio under which the government filed a charge of honest services wire fraud, a charge like bribery against FirstEnergy, the agency said.

The company agreed to pay $230 million split between the U.S. Treasury and the Ohio Development Service Agency for the benefit of Ohio utility customers that can't be recovered from customers.

“The CreditWatch placement reflects the likelihood we could raise the rating by one or more notches in the coming months following the positive developments contained in today's announcement and if the company identifies its long-term funding for its potential penalties and fines or it resolves the remaining investigations and lawsuits against the company, without weakening credit quality,” S&P said in a press release.

The subsidiaries and their debt also placed on positive watch are: FirstEnergy Transmission LLC; American Transmission Systems Inc., Jersey Central Power & Light Co., Metropolitan Edison Co., Mid-Atlantic Interstate Transmission LLC, Ohio Edison Co., Pennsylvania Electric Co., Cleveland Electric Illuminating Co., and Trans-Allegheny Interstate Line Co. and Cleveland Electric, Ohio Edison, Toledo Edison Co., Potomac Edison Co., West Penn Power Co., Pennsylvania Power Co. and Monongahela Power Co.

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