Research And Markets Research And Markets

Why U.S. Electric Utility Mergers Jeopardize The Balance Sheet Jun 05

  • ID: 2026456
  • June 2005
  • Region: United States
  • Standard & Poors
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  • AGL Resources Inc.
  • Cinergy Corp.
  • Dynegy Inc.
  • Enel SpA
  • Exelon Corp.
  • KeySpan Corp.
  • MORE

Announcements of mergers and acquisitions in the U.S. electric utility sector carry their own special spin and flair to help ease the approval processes and promote shareholder value. But it will be only the mythical electric utility merger announcement that will read: "today we have announced the strategic merger of our two firms to improve our credit profiles and strengthen the value of our bonds." And no one should expect such a pronouncement from what many anticipate will be a wave of mergers in the next 12 to 18 months, especially if Congress repeals the Public Utilities Holding Company Act of 1935 (PUHCA). The more realistic expectation is a Standard & Poor's CreditWatch with negative implications for the acquiring company...

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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- Allegheny Energy Inc.
- Duke Energy Corp.
- Electricite de France S.A.
- Ford Motor Co.
- Motors Liquidation Co. (fka General Motors Corp.)
- PacifiCorp
- Portland General Electric Co.
- Public Service Electric & Gas Co.
- Tucson Electric Power Co.
- The Williams Cos. Inc.
- Entergy Corp.
- Public Service Enterprise Group Inc.
- Vattenfall AB
- Cinergy Corp.
- AGL Resources Inc.
- El Paso Holdco LLC
- KeySpan Corp.
- Manila Electric Co.
- Dynegy Inc.
- Enel SpA
- Exelon Corp.
- Berkshire Hathaway Energy Company

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Note: Product cover images may vary from those shown