| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for DTE Energy Co. > News item |
Fitch cuts DTE Energy to BBB
Fitch Ratings downgraded the senior unsecured rating of DTE Energy Corp. to BBB from BBB+ and removed the rating from Rating Watch negative.
Additionally, Fitch said it has affirmed the outstanding debt ratings for DTE affiliates DTE Energy Enterprises, MCN Energy Enterprises, Detroit Edison and Michigan Consolidated Gas Co.
The rating outlook for all entities is now stable.
The lower ratings for DTE primarily reflect a revised view of the structural subordination of parent level debt at DTE relative to the secured and unsecured debt of the utility subsidiaries. Parent level debt leverage and cash coverage measures at the parent company are also more consistent with a BBB rating.
The affirmation of Detroit Ed and MichCon reflects the stable cash flow generation and favorable operating characteristics of the regulated utilities. Currently, both companies have pending rate requests at the Michigan Public Service Commission, and the rating affirmation incorporates Fitch's assumption that the regulatory outcome will be reasonably constructive and supportive of the current ratings.
The stable outlook for DTE and its affiliates reflects Fitch's expectation that the regulated operating subsidiaries will continue to have stable cash from operations, permitting consistent upstream dividends to the parent.
Additionally, it is anticipated that DTE will not materially increase its investment in non-regulated businesses. Credit enhancing events, such as the ability to monetize remaining tax credits and consequent reduction in parent debt could lead to positive rating actions in the future.
On the other hand, adverse results on the various pending tariff requests or unforeseen merger and acquisition activity would lead to negative rating actions.
© 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.