S&P revises ITC Holdings to stable

S&P said it affirmed its A- issuer credit rating on ITC Holdings Corp. and subsidiaries International Transmission Co., Michigan Electric Transmission Co., ITC Midwest LLC and ITC Great Plains LLC.

The agency also affirmed the BBB+ rating on ITC's senior unsecured debt and the A rating on the subsidiaries' first-mortgage bonds, reflecting no change to the 1+ recovery rating.

The outlook was revised to stable from negative.

"The rating actions reflect the completion of the merger with Fortis, including our view that Fortis' credit metrics will stabilize in 2017 onwards, with adjusted FFO to debt at about 10.5% for the next two years," S&P credit analyst Tyler Smith said in a news release.

The outlook revision further reflects the expectation that ITC's business and financial risk continues to reflect the company's stand-alone credit fundamentals at the current ratings despite its change in ownership, the agency added.

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