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Allegheny Energy Supply Co. LLC Jan 05
Standard & Poors, Jan 2005
Abstract
Valuable coal-based generation assets. Requirements contracts with regulated affiliates generate stable cash flow. Highly leveraged financial profile. Below-market offtake contracts with its affiliates. Exposure to rise in coal prices. The rating on Allegheny Energy Supply Co. LLC (AE Supply) reflects the consolidated credit profile of its parent, Allegheny Energy Inc., whose credit quality is determined in conjunction with that of its unregulated subsidiary, AE Supply, and its regulated utility subsidiaries, Monongahela Power Co., Potomac Edison Co., and West Penn Power Co. As a consolidated entity, Allegheny is restoring its credit profile after prior management's unsuccessful expansion into trading activities. Having sold its trading operation, the company's cash flow is likely to be stable but, due to its heavy debt burden...
Companies mentioned in this report are: Allegheny Energy Supply Co. LLC,Allegheny Energy Inc.,Monongahela Power Co.,Potomac Edison Co.,West Penn Power Co.,Allegheny Generating Co.
Action: Review
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: Full Analysis
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