Fitch rates Wisconsin Electric notes A+

Fitch Ratings said it assigned an A+ rating to Wisconsin Electric Power Co.’s senior unsecured notes. Wisconsin Electric’s issuer default rating is A with a stable outlook.

Proceeds will be used to repay, at maturity, the $250 million amount of the company’s 4.25% debentures due Dec. 15, to repay short-term debt and for working capital and other corporate purposes.

Wisconsin Electric’s ratings and stable outlook reflect the low-risk business profile of its regulated electric and gas utility operations, a constructive regulatory compact in Wisconsin and ongoing cost-control efforts. The company’s relatively low business risk profile and expected FFO-adjusted leverage improvement to 3.6x in 2022 from 4.1x in 2019 support the company's A rating and stable outlook, Fitch said.

“The increase in 2019 leverage is primarily driven by interim cash flow and earnings pressure from tax reform effects,” said the agency in a press release.

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