Fitch upgrades Avangrid, Rochester Gas

Fitch Ratings said it upgraded the long-term issuer default ratings of Avangrid, Inc. and its utility subsidiary, Rochester Gas and Electric Corp., to BBB+ from BBB.

Fitch also said it affirmed the long-term issuer default ratings of Avangrid’s utility subsidiaries, Central Maine Power Co. and New York State Electric & Gas Corp. at BBB+.

The agency also said it assigned a short-term issuer default rating of F2 to Avangrid.

The outlook on all of the companies is stable.

The upgrades reflect a combination of factors, including the exchange of 18½% of Avangrid’s common shares with those of UIL Holdings Corp., reducing ultimate parent Iberdrola, SA's ownership stake to 81½% and resulting in Avangrid’s public listing on the New York Stock Exchange, Fitch said.

The upgrades also consider the strong financial profiles on all four companies and the completion of the UIL acquisition, the agency said.

The ratings also take into account Avangrid’s large and geographically diverse renewable energy business, which does have a higher risk profile than the regulated utilities, Fitch said.

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