Approximately $91 billion of debt securities upgraded
New York, August 03, 2009 -- Moody's Investors Service has upgraded the majority of senior secured
debt ratings of investment-grade regulated utilities by one notch.
The senior secured debt upgraded includes first mortgage bonds,
other first lien mortgage bonds, and securities backed by first
lien mortgage bonds.
"This rating action widens the notching between most senior secured
debt ratings and senior unsecured debt ratings of investment-grade
regulated utilities to two notches from one previously," said
Moody's Vice President-Senior Credit Officer Michael Haggarty.
"The wider notching is based on our analysis of the history of regulated
utility defaults, which indicates that regulated utilities have
defaulted at a lower rate and experienced lower loss given default rates
than non-financial, non-utility corporate issuers."
This historical analysis was outlined in "Default, Recovery,
and Credit Loss Rates for Regulated Utilities, 1983-2008,"
a report published by Moody's in April along with a request for
comment to market participants on the possible implementation of wider
notching of ratings in the utility sector.
"The study of defaults and the significant disparity in the magnitude
of loss given defaults provides a compelling rationale for placing an
additional notch between the senior secured and senior unsecured ratings,"
said Haggarty. There are certain limited exceptions to the wider
notching, including senior secured ratings currently under review
for possible downgrade or issuers with negative rating outlooks.
For more information, please see "Proposed Wider Notching
Between Certain Senior Secured Debt Ratings and Senior Unsecured Debt
Ratings for Investment Grade Regulated Utilities," Moody's
Special Comment, May 2009.
Senior secured debt ratings upgraded include:
ALLETE, Inc. upgraded to A2 from A3
Avista Corp., upgraded to Baa1 from Baa2
Black Hills Power, Inc., upgraded to A3 from Baa1
CenterPoint Energy Houston Electric LLC, upgraded to Baa1 from Baa2
Central Illinois Public Service Company, upgraded to Baa2 from Baa3
Central Maine Power Company, upgraded to A2 from A3
Cleveland Electric Illuminating Company (The), upgraded to Baa1
from Baa2
Colonial Gas Company, upgraded to A1 from A2
Commonwealth Edison Company, upgraded to Baa1 from Baa2
Connecticut Light & Power, upgraded to A2 from A3
Consumers Energy Company, upgraded to A3 from Baa1
Dayton Power & Light Company, upgraded to Aa3 from A1
Delmarva Power & Light Company, upgraded to A3 from Baa1
Detroit Edison Company (The), upgraded to A2 from A3
Duke Energy Carolinas, LLC, upgraded to A1 from A2
Duke Energy Indiana, Inc., upgraded to A2 from A3
Duke Energy Ohio, Inc., upgraded to A2 from A3
Duquesne Light Company, upgraded to A3 from Baa1
Entergy Arkansas, Inc., upgraded to A3 from Baa1
Entergy Gulf States Louisiana, LLC, upgraded to Baa1 from
Baa2
Entergy Louisiana, LLC, upgraded to A3 from Baa1
Entergy Mississippi, Inc., upgraded to Baa1 from Baa2
Entergy Texas, Inc., upgraded to Baa2 from Baa3
Florida Power & Light Company, upgraded to Aa2 from Aa3
Green Mountain Power Corporation, upgraded to A2 from A3
Illinois Power Company, upgraded to Baa2 from Baa3
Indianapolis Power & Light Company, upgraded to A3 from Baa1
International Transmission Company, upgraded to A2 from A3
ITC Midwest LLC, upgraded to A2 from A3
Jersey Central Power & Light Company, upgraded to A3 from Baa1
Kansas Gas and Electric Company, upgraded to Baa1 from Baa2
Laclede Gas Company, upgraded to A2 from A3
Massachusetts Electric Company, upgraded to A1 from A2
Metropolitan Edison Company, upgraded to A3 from Baa1
Michigan Consolidated Gas Company, upgraded to A2 from A3
Michigan Electric Transmission Company, LLC, upgraded to A2
from A3
Monongahela Power Company, upgraded to Baa1 from Baa2
Narragansett Electric Company, upgraded to A1 from A2
New Jersey-American Water Company, Inc., upgraded
to A2 from A3
Niagara Mohawk Power Corporation, upgraded to A1 from A2
Northern Illinois Gas Company, upgraded to Aa3 from A1
Northern States Power Company (Minnesota), upgraded to A1 from A2
Northern States Power Company (Wisconsin), upgraded to A1 from A2
Northwest Natural Gas Company, upgraded to A1 from A2
Northwestern Corporation, upgraded to A3 from Baa1
Ohio Edison Company, upgraded to A3 from Baa1
PacifiCorp, upgraded to A2 from A3
Pennsylvania-American Water Company, upgraded to A2 from
A3
Pennsylvania Electric Company, upgraded to A3 from Baa1
Pennsylvania Power Company, upgraded to A3 from Baa1
Portland General Electric Company, upgraded to A3 from Baa1
Potomac Edison Company (The), upgraded to Baa1 from Baa2
Potomac Electric Power Company, upgraded to A3 from Baa1
Progress Energy Carolinas, Inc., upgraded to A1 from
A2
Progress Energy Florida, Inc., upgraded to A1 from
A2
Public Service Company of Colorado, upgraded to A2 from A3
Public Service Company of New Hampshire, upgraded to A3 from Baa1
Public Service Electric and Gas Company, upgraded to A2 from A3
Puget Sound Energy, Inc., upgraded to Baa1 from Baa2
Rochester Gas & Electric Corporation, upgraded to A3 from Baa1
San Diego Gas & Electric Company, upgraded to Aa3 from A1
South Jersey Gas Company, upgraded to A2 from A3
Southern California Edison Company, upgraded to A1 from A2
Southern California Gas Company, upgraded to Aa3 from A1
Southern Connecticut Gas Company, upgraded to A3 from Baa1
Southern Indiana Gas & Electric Company, upgraded to A2 from
A3
Superior Water, Light and Power Company, upgraded to A2 from
A3
System Energy Resources, Inc., upgraded to Baa2 from
Baa3
Terasen Gas Inc., upgraded to A1 from A2
Toledo Edison Company, upgraded to Baa1 from Baa2
Tucson Electric Power Company, upgraded to Baa1 from Baa2
Union Electric Company, upgraded to A3 from Baa1
West Penn Power Company, upgraded to Baa1 from Baa2
Westar Energy, Inc., upgraded to Baa1 from Baa2
Senior secured shelf ratings upgraded include:
El Paso Electric Company, upgraded to (P)A3 from (P)Baa1
Virginia Electric and Power Company, upgraded to (P)A2 from (P)A3
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New York
Michael G. Haggarty
VP - Senior Credit Officer
Global Infrastructure Finance
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
William L. Hess
Managing Director
Global Infrastructure Finance
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653