Moody's lifts Ohio Valley view to stable

Moody's Investors Service said it affirmed Ohio Valley Electric Corp.'s Baa3 senior unsecured rating.

The outlook was revised to stable from negative.

The change in rating outlook primarily reflects the extension of a key company agreement to 2040, which contractually binds the company's sponsors to provide for all fixed- and variable-operating costs, including debt service, for the life of the contract, Moody's said.

The agreement acts as the foundation for the ratings, the agency said.

The company's environmental exposure is somewhat mitigated by virtue of Kyger and Clifty being fully scrubbed and compliant by 2013, Moody's said.

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