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Industry Report Card: Amid Low Natural Gas Prices, U.S. Regulated Electric Sector Maintains Stable Momentum In The First Half Of 2010 Jun 10
Standard & Poors, June 2010
Abstract
At the midpoint of 2010, 84% of U.S. regulated electric companies had a stable outlook; the predominance of ratings are in the 'BBB' category, firmly investment grade. Results to date indicate that some electricity demand pickup has occurred, as demonstrated by improved industrial load, albeit from depressed levels. Outlook stability continues to be predicated on expectations of cost recovery for future environmental capital deployed, temperate expenditures on expansion projects, and strong access to capital markets. Several large merger and acquisition transactions were announced in the quarter, as firms position post recession. In our view, the transactions are not an indication of wide-scale consolidation for the fragmented electric utility industry, but strategic decisions to implement reformulated business strategies. We still believe...
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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