Fitch affirms PPL

Fitch Ratings said it affirmed the BBB issuer default ratings and other debt ratings of PPL Corp.

The agency also lowered the preferred stock ratings of PPL Electric Utilities Corp. to BBB from BBB+ and assigned short-term issuer default ratings of F to PPL Corp., PPL Capital Funding Corp. and PPL Electric Utilities Corp.

The outlook is stable.

According to the agency, the lower preferred stock rating reflects its junior position in the capital structure and does not reflect any change in credit quality.

Fitch said consolidated ratings of PPL Corp. reflect the substantial earnings and cash flow derived from regulated electric distribution operations and committed energy sales, the competitive advantage of the company's largely coal and nuclear generating fleet and a sound credit profile.

Ratings also reflect the large capital requirements of PPL Energy Supply, LLC for pollution control facilities that extend through 2009, the agency said.

Concerns also include the potential for legislation that alters the regulatory process in Pennsylvania, exposure to potentially stricter environmental regulations and commodity price exposure, Fitch said.

© 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.