Fitch lowers PPL Energy

Fitch Ratings said it downgraded the long-term issuer default ratings of PPL Energy Supply to BBB- from BBB and the short-term issuer default rating to F3 from F2.

The outlook remains negative.

Fitch also said it affirmed the long-term and short-term issuer default ratings and stable outlook of PPL Corp., PPL Capital Funding and each of its domestic regulated subsidiaries.

The ratings reflect its rapid transformation from a company heavily reliant on commodity-sensitive businesses to one that is highly regulated with substantially less business risk, Fitch said.

The ratings also consider credit metrics that are consistent with the agency's target ratios for the rating category and low risk profile, the agency said, despite the challenging operating environment in its merchant power business.

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