Moody’s changes FirstEnergy Ohio utilities to positive

Moody's Investors Service said it changed the outlook for Ohio Edison Co. (Baa1 senior unsecured), Cleveland Electric Illuminating Co. (Baa3 senior unsecured) and Toledo Edison Co. (Baa3 issuer) to positive from stable and affirmed their ratings.

The regulatory environment in Ohio has been credit supportive and Moody's said it expects these utilities to maintain key credit metrics at recently improved levels.

Furthermore, the agency expects the parent company FirstEnergy Corp. (Baa3 stable) to refocus on supporting its regulated transmission and distribution utilities now that it has fully transitioned to a regulated utility holding company.

"FirstEnergy's three Ohio utilities' key cash flow to debt metrics have improved over the last two years and are expected to be maintained at least at these higher levels over the next 2-3 years," Moody's analyst Jairo Chung said in a news release.

"The increase in these utilities' key credit metrics was as a result of equity contributions from the parent company and credit supportive regulatory outcomes in Ohio."

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