S&P: Ameren unchanged

Standard & Poor's said that Ameren Corp.'s (BBB-/Watch negative/A-3) Missouri utility, Union Electric Co. (BBB-/Watch negative/A-3), recently announced plans to invest $1 billion over the next three years to improve reliability, upgrade delivery systems and enhance its power plants' environmental performance will not affect current ratings.

Although this three-year program represents a commitment beyond the $500 million per year that the company has been spending on system maintenance and improvements and will likely increase the company's need for external capital, it may also help to cultivate better regulatory and customer relationships, which have been under pressure in recent years, the agency said.

Meanwhile, S&P said that the much more significant consideration for Ameren's credit quality is the possibility of rate-freeze legislation and rate rollbacks affecting its subsidiaries in Illinois (all of which are rated BB-/Watch negative).

© 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.