Fitch affirms AEP Texas North

Fitch Ratings said it affirmed the following issuer default rating and other outstanding debt ratings for AEP Texas North Co.: issuer default rating at BBB+, senior unsecured debt at A- and preferred stock at BBB+.

The outlook is stable.

According to Fitch, the ratings for AEP Texas North reflect the company's expected stable and predictable cash flow from its regulated transmission and distribution business and its minimal exposure to commodity price risk following the divestiture of its generation assets.

Credit metrics are currently above average for the BBB+ category with the ratios of EBITDA to interest at 7.2 times and funds flow from operations interest coverage at 4.8x for the twelve month period ended Sept. 30, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.