Moody's rates Otter Tail notes Baa3

Moody's Investors Service said it confirmed Otter Tail Corp.'s A3 senior unsecured rating, which after a transition to a holding company structure, will be owned by its utility subsidiary Otter Tail Power Co.

The agency also assigned a rating of Baa3 to the senior unsecured notes that, post restructuring, will be held at its parent holding company. After the transition, the parent company will be named Otter Tail Corp.

The outlook is stable.

Moody's said the actions conclude the review for downgrade that began Jan. 14, following the Minnesota Public Utilities Commission approval of the planned restructuring to establish a separate subsidiary corporation to conduct its utility operations.

The A3 rating for the debt that will be held at the utility subsidiary reflects the historically stable and predictable nature of the cash flows from its regulated operations and the reasonably supportive regulatory environment, the agency said.

The Baa3 rating assigned to senior unsecured guaranteed notes recognizes their structurally subordinate position, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.