Moody’s rates Ameren Transmission, notes A2

Moody's Investors Service said it assigned an A2 issuer rating to Ameren Transmission Co. of Illinois and an A2 rating to its $450 million issuance of senior notes.

The outlook is stable.

Moody’s said the A2 rating reflects Ameren Transmission’s low business risk profile as a Federal Energy Regulatory Commission (FERC) regulated transmission-only company. It operates under FERC's credit supportive regulatory framework, which provides a full forward-looking formula rate mechanism. FERC's regulatory framework results in transparent and visible cash flows and solid credit metrics.

The rating also factors in high near-term capital expenditures related to transmission projects that are either under construction or in development, the agency added.

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