Moody's affirms ITC Holdings

Moody's Investors Service said it affirmed ITC Holdings Corp.'s Baa2 unsecured rating following the announcement that ITC has agreed to merge with the transmission business of Entergy Corp.

"The affirmation reflects ITC's efforts to grow its FERC-regulated transmission system and we observe one of the central benefits to the transaction is the ability to unlock transmission investments from state regulation and place them under more credit supportive federal regulation. We also think the transaction is modestly credit positive for ITC, allowing the company to grow materially and to diversify its service territory." Moody's analyst Mitchell Moss said in a news release.

"However, due to the number of regulatory approvals required, we believe there is significant uncertainty about whether the transaction will ultimately be completed," Moss added in the release.

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