Fitch: AEP Texas Central view stable

Fitch Ratings said it affirmed AEP Texas Central and revised the outlook to stable from negative.

AEP has an issuer default rating at BBB, senior secured debt at A-, senior unsecured debt at BBB+ and preferred stock at BBB.

The outlook follows the reasonable outcome to the company's electric rate case in Texas, the agency said.

According to Fitch, the ratings reflect the company's expected stable cash flow from regulated distribution and transmission operations and minimal exposure to commodity price risk. The company benefits from its affiliation with parent, American Electric Power Co. (BBB issuer default rating, stable).

The agency said credit concerns involve the historically challenging state regulatory environment and concentration of receivables among a relatively small group of counterparties.

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