S&P cuts Central Maine debt

Standard & Poor's said it affirmed Central Maine Power Co.'s BBB+ corporate credit rating and senior unsecured debt rating. S&P lowered the senior secured debt rating to A- from A and revised the recovery rating to 1 from 1+, which better reflects the recovery prospects for first mortgage bondholders.

The outlook is stable.

The affirmation reflects the company's low-risk business strategy, tempered by an aggressive financial position that has come under pressure from the expansion of its transmission system and short-term financing needs, the agency said.

The stable outlook reflects the company's low-risk strategy to invest in the regulated transmission and distribution business, its balanced capital approach, average regulatory risk and stable cash flow metrics, the agency added.

The ratings reflect the company's low-risk business strategy and excellent business profile, tempered by an aggressive financial position that has come under pressure after expanding its transmission system and short-term financing needs, S&P said.

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