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:
I AGREE
Rating Action:

Moody's changes Consolidated Edison's outlook to positive

30 Jul 2013

Approximately $11 billion of debt affected

New York, July 30, 2013 -- Moody's Investors Service ("Moody's") affirmed the ratings of the debt obligations of Consolidated Edison, Inc. (ConEd, Baa1 issuer rating) and its subsidiaries Consolidated Edison of New York, Inc. (CECONY, A3 senior unsecured) and Orange and Rockland Utilities, Inc. (O&R, Baa1 senior unsecured). The rating affirmation includes CECONY and O&R's revenue bonds that were issued through the New York State Energy Research and Development Authority. Moody's also changed their rating outlooks to positive from stable.

RATINGS RATIONALE

The positive outlook reflects Moody's assessment of ConEd's recent financial results and future prospects. The positive outlook is driven by CECONY, and ConEd as a result, since CECONY represents roughly 90% of the company. O&R benefits as a member of a stronger ConEd family.

"ConEd has proven to be resilient through the recession and natural disasters, and it should prosper from a more benign regulatory environment and rate base growth in an expanding economy," said Moody's senior vice president Mihoko Manabe.

Since January 2013, CECONY has been in a rate case proceeding requesting base rate increases totaling $443 million for all its operations, which includes electric, gas, and steam. The New York Public Service Commission (PSC) is expected to issue an order by end of this year, and the new rates will go into effect in January 2014.

The outcome of this rate case will be a litmus test for the current tone of the PSC and the regulatory environment in New York State, which are key considerations in ConEd's ratings. An element of the unknown is presented by some recent turnover among commissioners. The positive outlook incorporates Moody's view that the rate proceeding will be resolved in a credit-supportive manner.

Moody's has noted more predictability in ConEd's regulatory environment since 2009, when Moody's downgraded ConEd ratings by two notches after a series of unfavorable rate cases. Since then, ConEd has been able to settle most of its rate cases, and while authorized ROEs continue to be below industry averages, that gap has narrowed. The regulatory scheme in the state has been consistent and mostly credit-positive. For example, Moody's views full revenue decoupling for both electric and gas services and weather normalization for gas as material credit-positive features.

These stabilizing rate features contribute to ConEd's very steady cash flow and credit metrics that change little from year to year. In addition, Moody's considers transmission and distribution utilities like ConEd to have lower business risk than other utilities that own generation, which entails numerous operational and financial risks.

ConEd's recent credit metrics have been on par with other Baa1-rated major electric utility companies, but its business risk is lower than most. Some of the strength in ConEd's and its peers' recent cash flow ratios has been due to bonus depreciation which will expire this year; however, Moody's believes that the company's underlying baseline performance has improved since 2009. For example, in 2012, cash flow before working capital (CFO Pre-WC) to debt was 20%, but without bonus depreciation, Moody's estimates that ratio was 18%, a baseline which is well above the 14% average the company recorded between 2007 and 2009.

ConEd's ability to sustain such level of credit metrics will be dependent on the outcome of CECONY's rate case. Moody's anticipates that CECONY will receive reasonable recovery of its deferred costs, including approximately $430 million related to Superstorm Sandy in 2012 and $1 billion of storm hardening investments.

ConEd and its subsidiaries could be upgraded if CECONY's rate case decision at the end of this year is supportive and will result in stable credit metrics, such as consolidated CFO pre-WC to debt that can be sustained at least around 17%.

If CECONY's rate relief is inadequate and timing prolonged, ConEd and its subsidiaries' outlooks will revert to stable. While Moody's does not consider it likely in the near term, ConEd and its subsidiaries' ratings could be downgraded from any unexpectedly negative political or regulatory development that causes a deterioration in their credit profiles, for example, weakening of consolidated CFO pre-WC to debt to below 13% on a sustainable basis.

Outlook Actions:

..Issuer: Consolidated Edison Company of New York, Inc.

....Outlook, Changed To Positive From Stable

..Issuer: Consolidated Edison, Inc.

....Outlook, Changed To Positive From Stable

..Issuer: Orange and Rockland Utilities, Inc.

....Outlook, Changed To Positive From Stable

Affirmations:

..Issuer: Consolidated Edison Company of New York, Inc.

.... Issuer Rating, Affirmed A3

....Multiple Seniority Shelf Aug 1, 2015, Affirmed (P)A3

....Multiple Seniority Shelf Aug 1, 2015, Affirmed (P)Baa1

....Multiple Seniority Shelf Aug 1, 2015, Affirmed (P)Baa2

....Senior Unsecured Commercial Paper, Affirmed P-2

....Senior Unsecured Regular Bond/Debenture Apr 1, 2033, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Jun 15, 2033, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Feb 1, 2014, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Feb 1, 2034, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Mar 1, 2035, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Jul 1, 2035, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Dec 15, 2015, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Mar 15, 2036, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Jun 15, 2036, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Sep 15, 2016, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Dec 1, 2036, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Dec 1, 2016, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Dec 1, 2036, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Aug 15, 2037, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Apr 1, 2018, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Apr 1, 2038, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Dec 1, 2018, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Apr 1, 2014, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Apr 1, 2019, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Dec 1, 2039, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Jun 15, 2020, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Jun 15, 2040, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Mar 15, 2042, Affirmed A3

....Senior Unsecured Regular Bond/Debenture Mar 1, 2043, Affirmed A3

..Issuer: Consolidated Edison, Inc.

.... Issuer Rating, Affirmed Baa1

....Multiple Seniority Shelf Aug 1, 2015, Affirmed (P)Baa1

....Multiple Seniority Shelf Aug 1, 2015, Affirmed (P)Baa2

....Senior Unsecured Commercial Paper, Affirmed P-2

..Issuer: New York State Energy Research & Dev. Auth.

....Senior Unsecured Revenue Bonds May 1, 2034, Affirmed A3

....Senior Unsecured Revenue Bonds May 1, 2034, Affirmed A3

....Senior Unsecured Revenue Bonds May 1, 2034, Affirmed A3

....Senior Unsecured Revenue Bonds Oct 1, 2036, Affirmed A3

....Senior Unsecured Revenue Bonds Oct 1, 2036, Affirmed A3

....Senior Unsecured Revenue Bonds Oct 1, 2036, Affirmed A3

....Senior Unsecured Revenue Bonds Oct 1, 2036, Affirmed A3

..Issuer: New York State Research & Development Auth.

....Senior Unsecured Revenue Bonds Jan 1, 2039, Affirmed A3

....Senior Unsecured Revenue Bonds Jan 1, 2039, Affirmed A3

....Senior Unsecured Revenue Bonds Jan 1, 2039, Affirmed A3

....Senior Unsecured Revenue Bonds Jan 1, 2039, Affirmed A3

....Senior Unsecured Revenue Bonds May 1, 2032, Affirmed A3

....Senior Unsecured Revenue Bonds May 1, 2032, Affirmed A3

....Senior Unsecured Revenue Bonds May 1, 2032, Affirmed A3

....Senior Unsecured Revenue Bonds May 1, 2032, Affirmed A3

....Senior Unsecured Revenue Bonds Oct 1, 2035, Affirmed A3

..Issuer: Orange and Rockland Utilities, Inc.

.... Issuer Rating, Affirmed Baa1

....Multiple Seniority Shelf, Affirmed (P)Baa1

....Multiple Seniority Shelf, Affirmed (P)Baa2

....Senior Unsecured Commercial Paper, Affirmed P-2

....Senior Unsecured Regular Bond/Debenture Dec 1, 2027, Affirmed Baa1

....Senior Unsecured Regular Bond/Debenture Apr 1, 2015, Affirmed Baa1

....Senior Unsecured Regular Bond/Debenture Oct 1, 2016, Affirmed Baa1

....Senior Unsecured Regular Bond/Debenture Sep 1, 2018, Affirmed Baa1

....Senior Unsecured Regular Bond/Debenture Dec 1, 2019, Affirmed Baa1

....Senior Unsecured Regular Bond/Debenture Dec 1, 2039, Affirmed Baa1

....Senior Unsecured Regular Bond/Debenture Aug 15, 2015, Affirmed Baa1

....Senior Unsecured Regular Bond/Debenture Aug 15, 2040, Affirmed Baa1

Headquartered in New York, New York, Consolidated Edison, Inc. is a holding company whose principal subsidiaries are Consolidated Edison Company of New York, Inc. and Orange and Rockland Utilities, Inc. These utilities comprise the largest utility system in New York State and serve roughly 3.6 million electric, 1.2 million gas, and 1,717 steam customers.

The principal methodology used in this rating 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

For ratings issued on a program, series or category/class of debt, this announcement provides certain 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 certain 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 certain 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.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

The below contact information is provided for information purposes only. Please see the ratings tab of the issuer page at www.moodys.com, for each of the ratings covered, Moody's disclosures on the lead analyst and the Moody's legal entity that has issued the ratings.

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.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Mihoko Manabe
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

James Hempstead
Associate Managing Director
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 changes Consolidated Edison's outlook to positive
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