A Sluggish Economy And Developing Regulations Remain The Biggest Shocks To U.S. Public Power Credit Quality Jan 12

  • ID: 2048138
  • January 2012
  • Region: United States
  • Standard & Poors
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A double whammy of economic and regulatory risks is bearing down on U.S. public utilities. Standard & Poor's Ratings Services believes that in the next 12 months, credit quality will remain solid and ratings will stay stable , due in large part to public power's rate-setting autonomy and lack of competition for retail customers. However, we believe the long-term picture is less than clear, with potential problems for some utilities that do not respond effectively to rising costs. (Watch the related CreditMatters TV segment titled, "U.S. Public Utilities: How Economic And Regulatory Risks Could Shock The System," dated Feb. 3, 2012.) In the meantime, we believe utilities are deciding how to best handle the challenge. Some are postponing plans until...

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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