S&P rates Scottish Power loan BBB+

Standard & Poor's said it assigned a BBB+ long-term debt rating to Scottish Power plc's (A-/stable/A-2) new £500 million five-year multi-currency senior unsecured revolving credit facility due 2010.

Proceeds will be used for working capital requirements and to refinance existing credit facilities.

S&P said the ratings on Scottish Power and related entity Scottish Power UK plc (A-/stable/A-2), collectively known as Scottish Power, are underpinned by solid cash flow from the group's regulated U.K. transmission and distribution business, improved regulatory relationships, good record of reducing costs, improving infrastructure operational performance and cautious approach to asset acquisition.

These strengths are offset by the group's aggressive capital expenditure program and exposure to price volatility in the U.K. power market and in the United States through its unregulated U.S. energy management business PPM Energy. the agency said. In addition, until the sale of PacifiCorp (A-/negative watch/A-2), the group will face the challenges of managing a geographically remote subsidiary.

© 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.