Fitch upgrades Ipalco

Fitch Ratings said it upgraded Ipalco Enterprises, Inc.'s long-term issuer default rating to BBB- from BB+.

Fitch also said it upgraded Indianapolis Power and Light Co.'s long-term issuer default rating to BBB+ from BBB-.

The outlook on both companies also was revised to stable from positive.

The upgrades follow the approval of the company's base rate case, which provides $44 million rate increase and recovery for the new 671 MW Eagle Valley combined cycle gas turbine generation plant, Fitch explained.

The completion of the plant and the rate case approval were previously considered key factors in resolving the positive outlooks at both entities, the agency said.

The ratings reflect the supportive regulatory environment in Indiana, as well as the improving fuel mix, Fitch said.

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