Moody’s ups FirstEnergy units

Moody's Investors Service said it upgraded the ratings of four FirstEnergy Corp. (Baa3 stable) utility subsidiaries including Ohio Edison Co. and Pennsylvania Power Co. to A3 from Baa1, Toledo Edison Co. to Baa1 from Baa3, and Cleveland Electric Illuminating Co. to Baa2 from Baa3.

The outlook for Ohio Edison remains positive, the outlook for PennPower was revised to positive from stable, and the outlooks for Toledo Edison and CEI were revised to stable.

“FirstEnergy's Ohio utilities benefit from a constructive regulatory environment, which should drive rate base growth over the next several years,” Moody's analyst Jairo Chung said in a news release.

“Combined with prior material equity infusions, the timely recovery mechanisms should position the utilities to sustain their strong financial profiles over the next few years.”

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