S&P reviews FirstEnergy

S&P said it placed its BBB- corporate credit ratings on FirstEnergy Solutions Corp. and affiliates FirstEnergy Generation Corp., FirstEnergy Nuclear Generation Corp., Allegheny Energy Supply Co. LLC and Allegheny Generating Co. on CreditWatch with negative implications.

The agency will resolve the CreditWatch listing after reviewing FirstEnergy Corp.'s strategic plan and discussing the supply business's importance to the parent with management.

In addition, S&P withdrew the corporate credit rating on Allegheny Energy Inc. at the issuer's request.

The CreditWatch listing affects about $3.6 billion of debt at FirstEnergy and affiliates.

"As part of the CreditWatch resolution we will reassess the core designation of FES and its affiliates due to the decreasing relative size of the competitive businesses to the parent company, and because of the widening gap between the business risk profiles of FirstEnergy's regulated and competitive operations," S&P credit analyst Aneesh Prabhu said in a news release.

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