Moody's lowers Vectren view to negative

Moody's Investors Service said it changed the outlook of Vectren Utility Holdings, Inc. and its subsidiaries, Indiana Gas Co. , Inc. and Southern Indiana Gas & Electric Co. (Sigeco), to negative from stable.

The agency said it expects the credit metrics of Vectren Utility Holdings and its utility subsidiaries to weaken as they pursue robust multi-year capital investment plans, Moody's explained.

This weakness over the near-term is exacerbated by the loss of cash flow benefits from bonus depreciation in 2018 and 2019 as a result of the U.S. Tax Cuts and Jobs Act, the agency said.

On a consolidated basis, the agency said it expects Vectren Utility to generate average cash flow from operations before changes in working capital-to-debt in the high teens range over the next few years, well below historical levels, Moody's said.

As an outcome of this transition plan, Sigeco will reduce its CO2 emissions by 60% from 2005 levels by 2024, the agency said.

Moody's said it continues to view the regulatory environments in Indiana and Ohio to be credit supportive.

© 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.