S&P: AEP plant sale favorable

American Electric Power Co. Inc.'s (BBB/stable/A-2) sale of two large coal-fired plants in the U.K. for $456 million will have no immediate affect on its credit ratings but is viewed by Standard & Poor's as supportive of credit quality.

S&P said the transaction reinforces AEP's commitment to shed its higher-risk, noncore assets, and is expected to improve balance-sheet strength as proceeds are applied to debt reduction. The company has now almost completely divested itself of assets unrelated to its primary strategic focus on regulated electric utilities.

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