S&P: PNM outlook negative

Standard & Poor's said it revised its outlook to negative from stable on the credit ratings of PNM Resources Inc. and electric utility subsidiaries Public Service Co. of New Mexico and Texas-New Mexico Power Co.

The agency said that the negative outlook reflects its perception of increased regulatory risk at PNM that, if not managed or mitigated, could harm credit quality and lead to lower ratings.

Consolidated ratings are underpinned by utility operations, which are the primary source of cash flow, the agency said, adding that the hearing examiner's recommendation in PNM's pending electric rate case for a $24 million (4.4%) increase, which compares to the company's request of $82 million (14.7%.), could lead to weaker credit metrics than previously expected if adopted by the New Mexico Public Service Commission.

© 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.