S&P puts Energy Harbor on watch

S&P said it placed its Energy Harbor Corp. ratings on CreditWatch with negative implications following federal investigations in connection with an alleged $60 million corruption scheme that helped the promulgation of Ohio House Bill 6 (HB 6) into law. HB 6 created a new Clean Air program to subsidize nuclear units, among others, and save them from closure.

The agency said it understands there are no charges filed against Energy Harbor or any of its officials. The investigation is in its early stage and is ongoing.

“The CreditWatch reflects risks that both legislation could be introduced to overturn HB 6, in which case Energy Harbor could face a material decline in EBITDA given that zero-emission credits (ZECs) account for 25%-30% of EBITDA over the next seven years and/or the potential that Energy Harbor is in some way implicated in the alleged criminal activity,” S&P said in a press release.

The agency noted Ohio Democrats said they would likely introduce legislation to repeal HB 6.

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