Fitch downgrades Otter Tail outlook to negative

Fitch Ratings said it affirmed the long-term issuer default rating of Otter Tail Corp. at BBB- and the long term issuer default rating of its regulated electric utility subsidiary, Otter Tail Power Co. at BBB.

The outlook is revised to negative from stable.

The ratings take into consideration the company's unusual business portfolio, including a relatively small electric utility and a mix of small cyclical industrial businesses that operate in fragmented and competitive markets, Fitch said.

The company generally does not benefit from advantageous size and scale in its industrial markets, the agency said.

Due to the risks of its cyclical, diversified businesses, Fitch said it rated Otter Tail one notch below Otter Tail Power.

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