S&P moves FirstEnergy view to positive

S&P said it revised its outlook for FirstEnergy Corp. and its subsidiaries FirstEnergy Transmission LLC, American Transmission Systems Inc., Mid-Atlantic Interstate Transmission LLC, Ohio Edison Co., Toledo Edison Co., Pennsylvania Electric Co., Metropolitan Edison Co., Pennsylvania Power Co., West Penn Power Co., Jersey Central Power & Light Co., Cleveland Electric Illuminating Co. and Allegheny Generating Co. to positive from stable.

FirstEnergy Corp. reported it will sell a 30% interest in FirstEnergy Transmission to Brookfield Super-Core Infrastructure Partners for $3.5 billion, pending regulatory approvals. “We expect that management will use the proceeds in a credit-supportive manner,” S&P said in a statement.

“The positive outlook on FE reflects our expectation that the company will improve its funds from operations (FFO) to debt to consistently above 12% following close of the 30% FET minority stake sale. The outlook also reflects the prospect for further rating improvement should the company's financial measures strengthen while it continues to meet its obligations under its deferred prosecution agreement (DPA), which ends, subject to FE fulfilling all DPA obligations, in July 2024,” S&P said.

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