Fitch moves Ohio Power view to negative

Fitch Ratings said it changed its outlook for Ohio Power Co. (OPCo) to negative from stable and affirmed its A- issuer default rating and A senior unsecured ratings.

“OPCo's negative outlook reflects the unresolved pressure on credit metrics as a result of high capex and significant growth in low-margin commercial customers. As a result, OPCo is expected to be outside of is 4.5x FFO leverage downgrade threshold through the forecast period, unless there is a change to regulatory mechanisms, a reduction in capex or additional support from AEP, a negative rating action is likely,” Fitch said in a press release.

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