S&P slices Entergy New Orleans

S&P said it downgraded the ratings for Entergy New Orleans LLC to BB+ from BBB and its first-mortgage bonds to BBB+ from A-. The 1+ recovery rating on the bonds remains unchanged.

“The lower issuer credit rating reflects a change in the business risk profile to satisfactory from strong due to ongoing risks related to ENO's exposure to coastal storms. In addition, we apply the negative comparable ratings analysis modifier due to weaker financial measures within the financial risk category,” S&P said in a press release.

ENO's service territory is expected to suffer ongoing exposure to severe storms like Hurricane Ida, potentially leading to significant liabilities and damages to the infrastructure, the agency warned.

The outlook is stable.

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