Allegheny Energy Supply Is Restoring Its Credit Profile Feb 05
- ID: 2048341
- February 2005
- Standard & Poors
Allegheny Energy Inc., a midsize utility company in Greensburg, Pa., is in the process of restoring its credit profile after the previous management's unsuccessful expansion into merchant and trading activities. Standard & Poor's raised company's consolidated rating to 'B+' in August 2004 to reflect the company's progress in shedding business risk by selling its trading portfolio and paying down debt at its generation subsidiary, Allegheny Energy Supply Co. LLC, (AE Supply; B+/Positive/--) through equity issuance and asset sales. The rating could continue to improve as the company executes its plan to pay down $1.5 billion or more of debt between December 2003 and the end of 2005. Standard & Poor's estimates that most recently Allegheny has paid down about $280...
Companies mentioned in this report are: Ohio Valley Electric Corp.,Allegheny Energy Supply Co. LLC
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.
SHOW LESS READ MORE >