Fitch ups Allegheny Energy

Fitch ratings said it upgraded the senior unsecured rating of Allegheny Energy Supply Co., LLC (AE Supply) to B+ from B- because of debt reduction, lower business risks due to the sale or wind-down of higher risk non-regulated activities and improvements in financial reporting and controls.

The outlook remains positive.

Fitch said it projects funds from operations to cover interest expense by nearly 2.0 times and a reduction of the debt/EBITDA ratio to less than 6 times in 2005, with improvements anticipated as higher contract generation rates take effect and more generation transitions to market-based rates.

The agency said the upgrade primarily reflects the improvement in AE Supply's credit quality.

© 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.