S&P: PPL on positive watch

Standard & Poor’s said it placed the BBB long-term issuer credit ratings on PPL WEM Holdings Ltd. and its operating subsidiaries, Western Power Distribution (East Midlands) plc and Western Power Distribution (West Midlands) plc on CreditWatch with positive implications.

The agency also said it affirmed the company’s A-2 short-term ratings on the three entities.

The ratings were placed on positive watch following news of parent company PPL Corp.’s intention to spin off its unregulated power generation subsidiary, PPL Energy Supply LLC, S&P said.

The divestiture of PPL Energy Supply is likely to benefit PPL’s business risk profile as unregulated operations are materially riskier than those that are regulated, the agency said.

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