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
Announcement:

Moody's Disclosures on Credit Ratings of Ameren Corporation

16 Mar 2012

New York, March 16, 2012 -- The following release represents Moody's Investors Service's summary credit opinion on Ameren Corporation and includes certain regulatory disclosures regarding its ratings. This release does not constitute any change in Moody's ratings or rating rationale for Ameren Corporation and its affiliates.

Moody's current ratings on Ameren Corporation and its affiliates are:

Senior Unsecured domestic currency ratings of Baa3

LT Issuer Rating ratings of Baa3

Senior Unsec. Shelf domestic currency ratings of (P)Baa3

Subordinate Shelf domestic currency ratings of (P)Ba1

Pref. Shelf domestic currency ratings of (P)Ba1

Commercial Paper domestic currency ratings of P-3

Central Illinois Light Company

BACKED Senior Secured domestic currency ratings of Baa1, on review for possible upgrade

Ameren Illinois Company

First Mortgage Bonds domestic currency ratings of Baa1, on review for possible upgrade

Senior Secured domestic currency ratings of Baa1, on review for possible upgrade

LT Issuer Rating ratings of Baa3, on review for possible upgrade

Pref. Stock ratings of Ba2, on review for possible upgrade

Pref. Stock domestic currency ratings of Ba2, on review for possible upgrade

Commercial Paper domestic currency ratings of P-3

BACKED Senior Secured domestic currency ratings of Baa1, on review for possible upgrade

BACKED Senior Unsecured Bank Credit Facility domestic currency ratings of Baa3, on review for possible upgrade

BACKED Pref. Stock domestic currency ratings of Ba2, on review for possible upgrade

Illinois Power Company

BACKED Senior Secured domestic currency ratings of Baa1, on review for possible upgrade

BACKED Pref. Stock domestic currency ratings of Ba2, on review for possible upgrade

Union Electric Company

First Mortgage Bonds domestic currency ratings of A3

Senior Secured domestic currency ratings of A3

LT Issuer Rating ratings of Baa2

Pref. Stock domestic currency ratings of Ba1

Commercial Paper domestic currency ratings of P-3

BACKED Senior Secured domestic currency ratings of A3

BACKED Senior Unsecured Bank Credit Facility domestic currency ratings of Baa3

Ameren Energy Generating Company

Senior Unsecured domestic currency ratings of Ba2

BACKED Senior Unsecured Bank Credit Facility domestic currency ratings of Ba2

Ameren Capital Trust I

BACKED Pref. Shelf domestic currency ratings of (P)Ba1

Ameren Capital Trust II

BACKED Pref. Shelf domestic currency ratings of (P)Ba1

RATINGS RATIONALE

Ameren's rating reflects below average regulatory frameworks in both Missouri and Illinois; an underperforming merchant generation segment; exposure to EPA mandated environmental compliance requirements; and stable consolidated financial metrics that are adequate for its current Baa3 rating. Ameren's rating also reflects its position as a parent holding company and considers the company's diversification with regulated utilities operating in two states along with two unregulated generating subsidiaries, as well as the modest $425 million of long-term debt at the parent company level.

- Below average regulatory frameworks in both Missouri and Illinois

Both of Ameren's regulated utilities operate in what Moody's considers to be below average regulatory frameworks, resulting in significant regulatory lag, preventing both Union Electric and Ameren Illinois from earning their allowed returns on equity. In Missouri, factors contributing to this assessment include lengthy 11 month base rate case timelines; the lack of interim rate relief; the use of historical test years; and less than full recovery of fuel costs in rates. Union Electric's most recent rate case outcome, in July 2011, was more supportive of credit quality than some previous rate cases, however, with the Missouri Public Service Commission (MPSC) approving a $173 million rate increase based on a 10.2% return on equity, including $52 million related to higher fuel costs than had been authorized in its last rate order. This outcome compared to an amended company request of $211 million. The order also approved the continued use of certain cost trackers, including vegetation management, infrastructure, and pension and post retirement benefits. Union Electric was denied recovery of $89 million costs related to enhancements to its Taum Sauk pumped storage facility in excess of those covered by insurance.

- Low power prices negatively affecting merchant generation margins

On February 29, 2012 the rating of Ameren Genco was downgraded to Ba2 (senior unsecured) from Ba1 and assigned a negative rating outlook as a result of declining cash flow coverage metrics, low power prices that are weighing heavily on margins, and the company's vulnerability to higher environmental spending requirements. Ameren Genco is one of two unregulated generating subsidiaries of Ameren, along with AERG, which is unrated. The company's margins have been constrained by a combination of low power prices and weak economic conditions in the Midwest, reducing overall demand for power. Moody's believes that the prospect for substantial near-term improvement in the company's margins are limited given the current outlook for natural gas prices, power prices, and regional economic conditions.

- Exposure to new EPA environmental compliance mandates in both its Missouri regulated and its merchant generation business

In 2010, Ameren generated 85% of its electricity from coal, making it one of the more vulnerable utility systems to additional costs associated with EPA mandated environmental compliance regulations at both its Missouri regulated utility and at both of its merchant generation subsidiaries. The company is likely to incur significant costs to comply with regulations curbing emissions from its coal plants, some of which may ultimately be retired. Union Electric recently entered into a contract for the purchase of 91 million tons of ultra-low sulfur coal that will allow the company to avoid some environmental expenditures by 2014 and delay the installation of additional scrubbers until after 2017. Union Electric's current rating and stable outlook incorporates Moody's expectation that the company will be able to recover its environmental compliance expenditures in rates, although there could be delays, adding to regulatory lag.

However, Ameren's merchant generating subsidiaries will need to recover such expenditures in their unregulated rates and, in contrast to some of its generating company peers, the company's merchant generation fleet is only partially scrubbed.

- Stable consolidated cash flow coverage metrics and low parent company debt are supportive of its current rating

Ameren's consolidated cash flow coverage metrics have been stable over the last two years after improving in 2009 following a dividend cut and after several rate increases at its regulated utilities. It also has a comparatively low $425 million of long-term debt at the parent company level. Consolidated interest coverage, as measured by CFO pre-working capital plus interest to interest, was above just 4.0x in both 2009 and 2010, up from 3.6x in 2008, on a Moody's adjusted basis, while cash flow from operations before working capital adjustments to debt increased to the 21% range in both 2009 and 2010, up from 15% in 2008. While part of this improvement resulted from the several rate cases, financial ratios also benefited from income tax refunds at Union Electric, higher deferred taxes, and Taum Sauk pumped storage facility insurance recoveries. Ameren's financial ratios may also benefit from bonus depreciation over the next two years, which Moody's views as a temporary acceleration of future cash flows.

Rating Outlook

The stable rating outlook reflects the recently credit supportive rate case outcome at Union Electric, consolidated cash flow coverage metrics that have improved over the last two years, a modest amount of debt at the parent company level, and the strength of its two utility subsidiaries, offsetting the current negative outlook on Ameren Genco.

What Could Change the Rating - Up

The rating could be upgraded if there is a substantial improvement in the regulatory environments in Missouri and Illinois such that its utility subsidiaries are upgraded; if the financial performance of its merchant generation subsidiaries improves; if consolidated financial metrics continue to exhibit positive trends, including CFO pre-working capital interest coverage of at least 4.0x and CFO pre-working capital to debt of at least 20% on a sustained basis.

What Could Change the Rating - Down

The rating could be lowered if there are adverse regulatory or political developments in either Missouri or Illinois, including unsupportive rate case outcomes; if either of its utilities or Ameren Genco is downgraded; if there is a continued decline in the performance of its merchant generation business; if the company issues significant additional debt at the parent company; or if there a decline in financial metrics, including CFO pre-working capital interest coverage below 3.5x or CFO pre-working capital to debt below 15% for a sustained period.

The principal methodology used in these ratings was Regulated Electric and Gas Utilities published in August 2009. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

Although these credit ratings have been issued in a non-EU country which has not been recognized as endorsable at this date, the credit ratings are deemed "EU qualified by extension" and may still be used by financial institutions for regulatory purposes until 30 April 2012. Further information on the EU endorsement status and on the Moody's office that has issued a particular Credit Rating is available on www.moodys.com.

For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

Information sources used to prepare each of the ratings are the following: parties involved in the ratings, parties not involved in the ratings, public information, confidential and proprietary Moody's Investors Service information, and confidential and proprietary Moody's Analytics information.

Moody's considers the quality of information available on the rated entities, obligations or credits satisfactory for the purposes of issuing these ratings.

Moody's adopts all necessary measures so that the information it uses in assigning the ratings 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.

Please see the ratings disclosure page on www.moodys.com for general disclosure on potential conflicts of interests.

Please see the ratings disclosure page on www.moodys.com for information on (A) MCO's major shareholders (above 5%) and for (B) further information regarding certain affiliations that may exist between directors of MCO and rated entities as well as (C) the names of entities that hold ratings from MIS that have also publicly reported to the SEC an ownership interest in MCO of more than 5%. A member of the board of directors of this rated entity may also be a member of the board of directors of a shareholder of Moody's Corporation; however, Moody's has not independently verified this matter.

Please see Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.

Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Michael G. Haggarty
Senior Vice President
Infrastructure Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

William L. Hess
MD - Utilities
Infrastructure Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's Disclosures on Credit Ratings of Ameren Corporation
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