Fitch affirms NorthWestern

Fitch Ratings said it affirmed the BBB long-term issuer default rating of NorthWestern Corp., along with its long-term issuer default rating at BBB, short-term issuer default rating at F2, first-mortgage bonds at A-, pollution control revenue bonds at A-, bank credit facility at BBB+ and senior unsecured debt at BBB+.

The outlook is stable.

The affirmation reflects the stability of cash flows from the company's regulated electric and gas businesses, Fitch said.

The rating also considers the expectation of improved credit protection measures in 2011 with the start of commercial operation of Mill Creek, NorthWestern's new 150 megawatts gas-fired power plant, the agency said.

A key rating driver includes its stable and predictable regulated utility operations and conservative rate-based investment strategy, Fitch said.

The rating also considers that cash flows are strong with net operating loss carry-forwards effectively sheltering income over the next five years, the agency said.

Concerns are largely centered on uncertainty regarding future regulatory decisions, below-average allowed returns on equity and regulatory lag, Fitch said.

© 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.