Moody's ups Ameren, Union Electric

Moody's Investors Service said it upgraded the ratings of Ameren Corp. to Baa2 from Baa3, Union Electric Co. to Baa1 from Baa2 and Ameren Illinois Co. to Baa1 from Baa2.

The outlooks are stable.

Moody's said the primary driver of the rating action was its more favorable view of the relative credit supportiveness of the U.S. regulatory environment.

Ameren's rating reflects improving regulatory environment in both Missouri and Illinois and financial metrics that are supportive of its ratings. Ameren's rating also reflects its position as a parent holding company that is diversified with regulated utilities operating in two states, and the modest $425 million of long-term debt at the parent company level.

The sale of the merchant operation, which was completed in December of 2013, eliminates a significant credit overhang, the agency said.

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