Moody's affirms Idacorp

Moody's Investors Service said it affirmed the ratings of Idacorp, Inc. (Baa2 issuer rating and Prime-2 short term debt rating), its special purpose subsidiaries, Idacorp Trust I, Idacorp Trust II and Idacorp Trust III (provisional Baa3 shelf registration for trust preferred securities) and its regulated utility subsidiary, Idaho Power Co. (Baa1 senior unsecured and Prime-2 short-term debt rating), but changed the rating outlook to negative from stable for all the companies.

The outlook change for Idacorp reflects Moody's concerns about weakness evidenced in the utility's key credit metrics in recent periods, including cash flow from operations excluding changes in working capital to interest and debt of 2.3 times and 6.8%, respectively, for the 12 months ended March 31.

This weak financial performance reflects the effects of poor hydro conditions and the adverse impact of the load growth adjustment rate on Idacorp's earnings and cash flow, the agency noted.

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