Moody's downgrades Ohio Power

Moody's Investors Service said it downgraded Ohio Power Co.’s issuer and senior unsecured ratings to Baa1 from A3 and changed its outlook to stable from negative.

"We expect Ohio Power's credit metrics to remain weak relative to those of other A3 rated utility peers for at least the next two years," said Nana Hamilton, a Moody’s vice president and senior analyst, in a press release.

Moody’s said it sees high capital expenditures piling on debt at Ohio Power and hurting its credit profile.

The issuer’s next electric security plan, which will become effective in June 2024, will be an important factor in determining Ohio Power’s longer-term credit quality beyond 2024, the agency said.

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