Fitch downgrades FirstEnergy

Fitch Ratings said it downgraded the issuer default ratings of FirstEnergy Corp. and its wholly-owned subsidiaries, FirstEnergy Solutions Corp. and Allegheny Energy Supply Co., LLC to BB+ from BBB-.

Fitch also said it downgraded Jersey Central Power & Light Co.'s issuer default rating to BBB- from BBB.

Jersey Central's outlook also was revised to stable from negative.

Fitch also said it affirmed the long-term issuer and securities ratings for all of FirstEnergy's remaining subsidiaries.

The outlook is stable.

Fitch also said it downgraded the short-term ratings of FirstEnergy and its subsidiaries to B from F3.

The ratings downgraded include FirstEnergy's senior unsecured debt to BB+ from BBB- and short-term issuer default and commercial-paper ratings to B from F3.

FirstEnergy Solutions' senior unsecured debt also was downgraded to BB+ from BBB-, short-term issuer default and commercial-paper ratings to B from F3.

Allegheny Energy's senior unsecured debt and revenue bonds were downgraded to BB+ from BBB- and short-term issuer default rating to B from F3.

Allegheny Generating's issuer default rating was affirmed at BBB and short-term issuer default rating was downgraded to B from F3.

Jersey Central Power & Light's senior unsecured debt also was downgraded to BBB from BBB+ and short-term issuer default and commercial-paper ratings to B from F3.

The ratings reflect the company's significant capital expenditures and rising operating costs due to environmental compliance standards, which further pressure margins and cash flows, Fitch said.

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