Moody’s downgrades Wepco, Wisconsin Gas

Moody’s Investors Service downgraded Wisconsin Electric Power Co., Wisconsin Gas LLC, Wisconsin Public Service Corp. and Elm Road Generating Station Supercritical, including their senior unsecured ratings to A2 from A1. It affirmed the P-1 short-term rating of Wisconsin Electric Power, Wisconsin Gas and Wisconsin Public Service. The outlooks are stable.

Moody’s also affirmed the ratings of parent WEC Energy Group, Inc., Wisconsin Energy Capital Corp. and Integrys Holding, Inc., including their A3 senior unsecured ratings, and changed their outlooks to negative from stable.

Moody’s said the downgrade is prompted by its expectation that key credit metrics will remain at a level that is more appropriate with the low-to mid-range of the A rating category.

In addition, Moody’s expects that the three utility subsidiaries will stay out of their general rate cases this year for the 2018 and 2019 period given an agreement with several of their large customers, which will contribute to these lower financial metrics.

The negative outlooks of WEC, Wisconsin Energy Capital and Integrys are largely triggered by the anticipated deterioration in consolidated key credit metrics.

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