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Allegheny Energy Inc. Jan 05
Standard & Poors, Jan 2005
Abstract
Regulated subsidiaries generate stable cash flow. Valuable legacy coal-based generation assets. Retail tariffs are among the lowest in the region. Heavy debt burden and weak credit metrics. Capped tariff rates in Pennsylvania. High industrial concentration (43% of MWh demand). The rating reflects Allegheny Energy Inc.'s process of restoring its credit profile after the previous management's unsuccessful expansion into trading activities. Now that the company has sold most its trading portfolio, its business risk profile is improving toward that of a typical integrated utility, but, due to its heavy debt burden from discontinued operations, credit measures are weak. The company's business risk profile is driven by the inherent stability of its three regulated utilities, which combined generate about 70% of its...
Companies mentioned in this report are: Allegheny Energy Inc.,Monongahela Power Co.,Potomac Edison Co.,West Penn Power Co.,Allegheny Generating Co.,Allegheny Energy Supply Co. LLC
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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