Moody's affirms PPL

Moody's Investors Service said it affirmed the ratings of PPL Corp. (Baa3 issuer rating) and its subsidiaries following the announcement that it reached a definitive agreement to acquire the Central Networks electric distribution business from E.ON UK plc for £4.0 billion.

The outlook is stable.

The affirmation recognizes that the planned acquisition of Central Networks further de-risks PPL's overall business platform as more than 70% of consolidated results will be provided by predictable, rate regulated businesses from three different jurisdictions, making the company's earnings, cash flow and dividends less reliant on the company's commodity business, Moody's said.

The affirmation also considers the pro-forma consolidated credit profile of PPL and factors in the increasing proportion of regulated activities, the geographic diversity across these businesses and the declining exposure to the commodities business as a source of cash flow and earnings, the agency said.

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