S&P upgrades American Water

Standard & Poor’s said it raised the issuer credit ratings on American Water Works Co. Inc. and subsidiaries, American Water Capital Corp., New Jersey-American Water Co. and Pennsylvania-American Water Co. to A from A-.

The outlook is stable.

The agency also said it raised the senior unsecured issue rating on American Water Capital to A from A-, senior secured issue ratings on New Jersey-American Water and Pennsylvania American Water to A+ from A, along with the short-term rating on American Water Works and American Water Capital to A-1 from A-2.

The upgrade reflects the continued improvement in cash flow and leverage measures, primarily as a result of the company’s improved management of regulatory risk and with the continued execution of its cost management initiative, which provides for incremental stability and certainty in cash-flow generation, S&P said.

The company will continue its relatively conservative financial policies to maintain its credit measures, the agency said.

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