S&P affirms FirstEnergy Corp.

S&P said it affirmed its rating, including the BBB- issuer credit rating and negative outlook, on FirstEnergy Corp. and its regulated utility subsidiaries American Transmission Systems, Cleveland Electric Illuminating Co., FirstEnergy Transmission LLC, Jersey Central Power & Light Co., Metropolitan Edison Co., Monongahela Power Co., Ohio Edison Co., Pennsylvania Electric Co., Pennsylvania Power Co., Potomac Edison Co., Toledo Edison Co., Trans-Allegheny Interstate Line Co. and West Penn Power Co.

“Our reassessment of FES' group status to nonstrategic from core reflects the company's public comments and our understanding based on recent conversations with senior management that FirstEnergy Corp. would no longer support FES even if FES falls into financial difficulties,” said S&P credit analyst Gabe Grosberg in a news release.

“This materially weaker support since the Federal Energy Regulatory Commission rescinded the affiliate waiver regarding a purchased power agreement between FES and FirstEnergy Corp.'s regulated Ohio utilities, leads us to consider FES as nonstrategic to FirstEnergy. Based on this revised assessment, we now rate FES based on its stand-alone credit profile, which results in a FES downgrade.”

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