Moody's may downgrade Ohio Power

Moody's Investors Service said it placed Ohio Power Co.'s A3 issuer rating and senior unsecured bonds and Baa2 preferred stock on review for possible downgrade.

The agency also affirmed the A3 senior unsecured rating for Columbus Southern Power Co. with a stable outlook.

The review for possible downgrade for Ohio Power primarily reflects its persistently weak financial profile given its existing rating category and the agency's expectation that resolution to the pending electric security plan filing is not likely to provide a sufficient enough increase in cash flow to justify maintaining an A3 senior unsecured rating, the agency said.

As for Columbus Southern Power, Moody's said it is a much smaller utility than its affiliate, Ohio Power; it has a smaller exposure to industrial load pressures; and it continues to produce reasonably strong financial credit metrics for its rating category.

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