Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

ADDENDUM - MOODY'S REVIEWS DEBT RATINGS OF UK REC'S AND MULTI-UTILITIES FOR POSSIBLE DOWNGRADE

13 Aug 1999
ADDENDUM - MOODY'S REVIEWS DEBT RATINGS OF UK REC'S AND MULTI-UTILITIES FOR POSSIBLE DOWNGRADE London, August 13, 1999 -- Addendum - Moody's adds the ratings of Hyder plc and its subsidiaries to the summary table of rating reviews for possible downgrade for the UK electric utility industry published yesterday. The full version of the text follows:

London, 12 August 1999 -- Moody's announced that it has placed many of its debt ratings of UK Regional Electricity Companies (REC's) and multi-utilities on review for possible downgrade following today's announcement of proposed swingeing cuts in their allowed earnings. The regulator has proposed headline reductions in allowed distribution revenues from April 2000 averaging 25% - 30%, with further 3% annual reductions in future years, adjusted for inflation. These were larger than expected, and represent very significant challenges to companies to improve their operating and capital efficiencies, particularly for those companies identified as being less efficient relative to their peers.

Today, electricity regulator Ofgem announced "draft determinations" for the distribution ("wires") businesses of the Regional Electricity Companies in England and Wales, and the vertically-integrated utilities in Scotland. These determinations will re-set the distribution tariffs applicable in the next five-year pricing period commencing April 2000. Tariffs have already fallen sharply over the past five years, as companies have implemented cost reduction programmes. However, the scale of proposed reductions for some companies appears considerable. The distribution price review is only one of several reviews affecting the sector. In September, Ofgem is expected to announce proposed price adjustments for the supply businesses. Final determinations are expected at the end of November 1999, with both distribution and supply adjustments to come into force on 1 April 2000. Companies have until the end of September to respond to these draft determinations. Should companies not accept the proposals, the matter would probably be referred to the new Competition Commission. Today's announcements are detailed and complex, but still require substantial clarification and there is likely to be some room for manoeuvre. However, it is clear that the regulator, like his counterpart at Ofwat, has retained a tough stance, particularly in setting challenging targets to reduce operating costs and capital expenditure while continuing to deliver an improved quality of supply.

The regulator must ensure that licence holders retain an investment grade rating. Today's proposals - even if implemented in full - are unlikely to result in operating companies losing investment grade status. However, rating actions may not be confined to a single notch. In particular, Moody's distinction between ratings of operating and holding companies becomes more appropriate. Moody's rates eleven of the twelve Regional Electricity Companies, and both Scottish companies. These companies face an average 25% - 30% reduction in tariffs from April 2000, with Scottish Power being the least affected at 12% - 17%, and SEEBOARD facing a potential 37% - 42% initial reduction. Behind these dramatic numbers is a switching of around 9% of costs out of distribution and into supply, but the regulator will announce next month how the supply businesses will be affected in his review. For a typical household, distribution represents around 30% of the annual bill.

Moody's review will focus on the ability of companies to deliver the cost savings called for by the regulator in his distribution and supply price reviews, and the clearly negative impact on financial flexibility and cashflows available to bondholders. For those RECs that have been acquired by US parents, our review will examine the ultimate parents' longer-term plans for their investments, especially in terms of future dividend policy. The final determination of tariffs will be an important factor behind the scale of any downward ratings movements. However, of equal importance will be management strategy in terms of dividend policy, pursuit of non-regulated business and the possibility of further corporate restructuring activity.
The multi-utilities (Hyder, United Utilities and Scottish Power) are exposed to both the electricity and water pricing reviews, and their ratings have had a negative outlook since November 1998. The Aa3 ratings of Scottish Power UK plc remain on review for possible downgrade in connection with the acquisition of US utility Pacificorp, announced in December 1998.

The ratings on Midlands Electricity plc (Baa1) and its UK parent Avon Energy Partners Holdings (Baa2) had been on review for upgrade following the sale of the supply business to National Power Plc. These ratings are now confirmed at their existing level.


London Electricity remains on review for upgrade following its purchase by Electricite de France.


Moody's ratings of electric and multi-utility companies are as follows:

On review for downgrade:
United Utilities PLC rated A2 / Prime-1 on review for possible downgrade
NORWEB plc rated A1 on review for possible downgrade
North West Water Limited (and guaranteed debt of North West Water Finance plc) rated A1 on review for possible downgrade
SEEBOARD plc rated A3 on review for possible downgrade
CSW Investments rated Baa1 on review for possible downgrade
Yorkshire Electricity Group plc rated Baa1 on review for possible downgrade
Yorkshire Power Finance Limited guaranteed by Yorkshire Power Group Limited rated Baa2 on review for possible downgrade
Yorkshire Capital Trust I rated "baa2" on review for possible downgrade
Northern Electric plc and guaranteed debt of Northern Electric Finance plc rated A3 on review for possible downgrade
CE Electric UK Funding Company rated Baa1 on review for possible downgrade
Southern Investments UK plc rated Baa1 on review for possible downgrade
Southern Investments UK Capital Trust I rated "baa2" on review for possible downgrade
Eastern Electricity plc rated A3 on review for possible downgrade
Eastern Group plc rated Baa1 on review for possible downgrade
TXU Eastern Holdings Limited and guaranteed debt of TXU Eastern Funding Company and Energy Group Overseas BV rated Baa1 on review for possible downgrade
Eastern Group plc rated Baa1 on review for possible downgrade
Hyder plc rated Baa1 on review for possible downgrade
Dwr Cymru and guaranteed debt of Welsh Water Utilities Finance PLC rated A2 on review for possible downgrade
South Wales Electricity plc rated A3 on review for possible downgrade
Scottish Power UK plc rated Aa3 remains on review for possible downgrade

Confirmed:
PowerGen UK plc rated A2 / Prime 1 confirmed
PowerGen (East Midlands) Investments rated A2 confirmed
East Midlands Electricity plc rated A1 / Prime-1 confirmed
Midlands Electricity plc rated Baa1 confirmed
Avon Energy Partners Holdings rated Baa2 confirmed
Southern Electricity plc rated Aa3 / Prime-1 confirmed
Scottish and Southern Energy plc rated Aa3 / Prime-1 confirmed
Prime-1 ratings of NORWEB plc, North West Water Limited confirmed
Prime-2 ratings of SEEBOARD plc, South Western Electricity plc, Yorkshire Electricity Group plc, Eastern Electricity plc and Northern Electric plc confirmed

On review for upgrade:
London Electricity plc rated Baa2 / Prime-2 and EDF London Capital, LP rated "baa3" remain on review for possible upgrade
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​
Moodys.com