Moody’s applies Baa3 to Alaska Electric

Moody's Investors Service said it assigned a Baa3 issuer rating to Alaska Electric Light and Power Co. (AELP), a subsidiary of Alaska Energy and Resources Co. (not rated), which is a subsidiary of Avista Corp. (Baa1 stable).

The outlook is stable.

"The Baa3 issuer rating for AELP reflects strong regulatory support provided by the Regulatory Commission of Alaska (RCA), which helps to offset AELP's weak financial metrics and small size" Moody’s assistant vice president Ryan Wobbrock said in a news release.

"The RCA's track record of allowing sufficient revenue increases to recover costs and allowing high returns (e.g., AELP's current 12.875% allowed ROE and 53.8% equity layer) provides the foundation for an investment grade credit profile that offsets AELP's other weaknesses."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.