Moody's ups American Water, subsidiaries

Moody's Investors Service said it upgraded American Water Works' long-term issuer rating to Baa1 from Baa2.

Moody's also upgraded subsidiaries American Water Capital Corp.'s long-term senior unsecured to Baa1 from Baa2, New Jersey American Water's long-term issuer rating to A3 from Baa1 and Pennsylvania American Water's long-term issuer rating to A3 from Baa1.

American Water Capital's P-2 commercial paper rating was affirmed and the outlooks for all four entities are stable.

"The upgrade of AWK reflects our expectation that the company will continue to make progress toward enhancing cost recovery throughout its broad base of regulated operations, which will improve financial metrics, including the ratio of funds from operations (FFO) to debt in the mid to high-teen's range," Moody's analyst Ryan Wobbrock said in a news release.

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