Fitch rates CMS junior sub notes BB+

Fitch Ratings said it affirmed the BBB long-term issuer default rating of CMS Energy Corp. and the A- issuer default rating of its regulated electric and gas utility subsidiary, Consumers Energy Corp.

The outlooks are stable.

In addition, the agency assigned a BB+ rating to CMS' pending issuance of junior subordinated notes due 2078.

The notes will rank subordinate and junior in right of payment to all of the company’s existing and future senior debt.

Net proceeds will be used to repay a portion of CMS' $225 million term loan due Dec. 21, 2018 and for general corporate purposes.

Fitch said the ratings benefit from the company's ownership of Consumers Energy, a regulated utility that accounts for greater than 95% of consolidated EBITDA.

“Consumers Energy's low-risk integrated electric and natural gas distribution operations bolster credit quality,” the agency said in a news release.

“Fitch expects Consumers Energy to remain CMS' lone core business and primary driver of consolidated growth over the long-term, further strengthening CMS' consolidated earnings mix.”

© 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.