S&P: BBB- to Mid-Atlantic Interstate Transmission

S&P said it assigned a BBB- issuer credit rating to Mid-Atlantic Interstate Transmission LLC (MAIT).

Mid-Atlantic Interstate Transmission was created in part with the transfer of regulated transmission assets of FirstEnergy Corp. (FE) subsidiaries Metropolitan Edison Co. (ME) and Pennsylvania Electric Co. (PE).

The outlook is negative.

"The rating on MAIT matches that of parent FE based on our assessment of MAIT as a core, wholly owned, utility subsidiary of FE," S&P credit analyst Obioma Ugboaja said in a news release.

This incorporates the agency’s view that Mid-Atlantic Interstate Transmission is highly unlikely to be sold, is integral to the overall group strategy, possesses a strong, long-term commitment from FirstEnergy’s management and is closely linked to the parent's name and reputation.

With no meaningful insulation to protect Mid-Atlantic Interstate Transmission from its parent, S&P said the issuer credit rating is capped at FirstEnergy’s group credit profile of bbb-.

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