S&P upgrades Ipalco

S&P said it raised its issuer credit rating on Ipalco Enterprises Inc. and Indianapolis Power & Light Co. to BBB from BBB-. The outlook is stable.

At the same time, the agency raised the ratings on Ipalco's senior notes to BBB- from BB+ and raised the rating on Indianapolis Power & Light's senior secured first-mortgage bonds to A- from BBB+ and raised the rating on its preferred stock to BB+ from BB.

The 1+ recovery rating on the first-mortgage bonds is unchanged.

S&P said the upgrades reflect the upgrade of ultimate parent AES Corp., the strength of Ipalco's stand-alone credit profile and the cumulative value of structural protections in place that insulate Ipalco from AES.

The agency said that based on the insulating measures in place, S&P rates Ipalco up to two notches above AES.

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