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
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...
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Research Type: Commentary
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