Moody's: American Electric subsidiaries view negative

Moody's Investors Service said it changed the outlook on four subsidiaries of American Electric Power Company, Inc. (Baa2 senior unsecured) to negative from stable: Appalachian Power Co. (Baa2 senior unsecured rating), Ohio Power Co. (A3 senior unsecured rating), Southwestern Electric Power Co. (Baa1 senior unsecured rating) and AEP Texas Central (Baa2 senior unsecured rating).

Affirmed were ratings and stable outlook for American Electric Power Co. (Baa2 senior unsecured rating) and its remaining five utility operating subsidiaries Columbus Southern Power Co. (A3 senior unsecured rating), Indiana Michigan Power Co. (Baa2 senior unsecured rating), Public Service Co. of Oklahoma (Baa1 senior unsecured rating), Kentucky Power Co. (Baa2 senior unsecured rating) and AEP Texas North (Baa1 senior unsecured rating), as was American Electric's Prime-2 short-term commercial paper rating.

The negative outlook for the four utility subsidiaries is exhibiting financial profiles that are increasingly being viewed as weak for their existing rating category, the agency said.

American Electric's Baa2 rating reflects the strong diversity of its nine primary utility operating subsidiaries, the agency said.

The rating is also supported by the strong financial profiles of Indiana Michigan Power and Columbus Southern, Moody's said.

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