Moody’s ups Progress Energy, cuts Piedmont

Moody's Investors Service said it revised the outlook for Duke Energy Corp. (Baa1) to stable from negative.

Moody's upgraded the ratings of Duke's intermediate subsidiary holding company, Progress Energy, Inc. (senior unsecured to Baa1 from Baa2), and downgraded the ratings of its natural gas distribution subsidiary, Piedmont Natural Gas Co., Inc. (senior unsecured to A3 from A2 and short-term rating for commercial paper to P-2 from P-1).

The agency affirmed Duke's ratings along with the ratings of its electric utility subsidiaries, including Duke Energy Carolinas, LLC (A1), Duke Energy Progress, LLC (A2), Duke Energy Florida, LLC (A3), Duke Energy Indiana, LLC (A2), Duke Energy Ohio, Inc. (Baa1) and Duke Energy Kentucky, Inc. (Baa1).

The outlook for Duke Energy Ohio was revised to stable from positive.

The upgrade for Progress Energy is driven by the structurally subordinate position of its debt vis à vis the debt at its utility subsidiaries, Moody’s said.

The downgrade of Piedmont's long-term ratings is driven primarily by an increase in debt funded capital expenditures as the company undertakes integrity management programs as well as expansions to supply additional gas fired generating facilities, the agency said.

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