Fitch: PPL Energy to negative

Fitch Ratings said it revised the outlook on PPL Energy Supply, LLC to negative from stable.

The agency also said it affirmed PPL Energy's long-term issuer default rating at BBB, senior unsecured debt at BBB, short-term issuer default rating at F2 and commercial-paper rating at F2.

Fitch also affirmed PPL Corp.'s long-term issuer default rating at BBB and short-term issuer default rating at F2 and affirmed the ratings on each of its domestic subsidiaries.

The ratings reflect PPL's transformation from a company heavily reliant on commodity sensitive businesses to one that is highly regulated with substantially less business risk, the agency said.

By comparison, regulated operations accounted for about 30% of EBITDA prior to two acquisitions by the company, Fitch said.

Rising capital expenditures in PPL's regulated segment pose a potential credit risk, the agency added.

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