Approximately $4.8 Billion of Debt Affected
New York, January 31, 2014 -- Moody's Investors Service upgraded the ratings of Ameren Corporation
to Baa2 from Baa3, Union Electric Company to Baa1 from Baa2,
and Ameren Illinois Company to Baa1 from Baa2. Concurrently,
we upgraded Ameren Corporation's commercial paper rating to Prime-2
from Prime-3. This rating action completes our review initiated
on November 8, 2013. The outlooks are stable.
RATING RATIONALE
The primary driver of today's rating action was Moody's more
favorable view of the relative credit supportiveness of the US regulatory
environment, as detailed in our September 2013 Request for Comment
titled "Proposed Refinements to the Regulated Utilities Rating Methodology
and our Evolving View of US Utility Regulation."
Ameren's rating reflects improving regulatory environment in both Missouri
and Illinois and financial metrics that are supportive of its ratings.
Ameren's rating also reflects its position as a parent holding company
that is diversified with regulated utilities operating in two states,
and the modest $425 million of long-term debt at the parent
company level. The sale of the merchant operation, which
was completed in December of 2013, eliminates a significant credit
overhang.
WHAT COULD CHANGE RATING -- UP
The rating could be upgraded if the regulatory environment in Missouri
and Illinois continue to improve, assuming the credit metrics are
supportive of an upgrade.
WHAT COULD CHANGE RATING -- DOWN
A negative rating action is possible should Illinois suffer a setback
in its regulatory process due to political or regulatory intervention
or its CFO Pre-WC to debt falls below the mid teens range on a
sustained basis.
The principal methodology used in this rating was Regulated Electric and
Gas Utilities published in December 2013. Please see the Credit
Policy page on www.moodys.com for a copy of this methodology.
Issuer: Ameren Corporation
Outlook is revised to stable from RUR-UP.
Upgraded:
Senior Unsecured -- Baa2 from Baa3
Subordinate Shelf -- (P)Baa3 from (P)Ba1
Pref. Shelf -- (P)Ba1 from (P)Ba2
Commercial Paper to P-2 from P-3
Senior Unsec. Shelf - (P)Baa2 from (P)Baa3
LT Issuer Rating - Baa2 from Baa3
Issuer Ameren Illinois Company
Outlook is revised to stable from RUR-UP
Upgraded:
Senior Unsecured to Baa1 from Baa2
Senior Secured -- A2 from A3
Pref. Stock to Baa3 from Ba1
LT Issuer Rating -- Baa1 from Baa2
Senior Secured Shelf -- (P)A2 from (P)A3
Pref. Shelf - (P)Baa3 from (P)Ba1
Senior Unsec. Shelf -- (P)Baa1 from (P)Baa2
Issuer: Union Electric Company
Outlook is revised to stable from RUR-UP
Upgraded:
Pref. Stock to Baa3 from Ba1
Pref. Shelf to (P)Baa3 from (P)Ba1
Commercial Paper -- P-2 from P-3
Senior Secured -- A2 from A3
LT Issuer Rating -- Baa1 from Baa2
Senior Secured Shelf -- (P)A2 from (P)A3
Senior Unsec. Shelf - (P)Baa1 from (P)Baa2
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.
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.
Toby Shea
Vice President - Senior Analyst
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