Fitch downgrades Scana, subsidiaries

Fitch Ratings said it downgraded the long-term issuer default ratings of South Carolina Electric and Gas Co. and its parent Scana Corp. by one notch to BB+ and BB, respectively.

The agency said it also downgraded the ratings of Public Service Co. of North Carolina by one notch to BB+, given the rating linkage with its parent, Scana.

Concurrently, the short-term issuer default ratings of South Carolina Electric and Public Service Co. of North Carolina were downgraded to B from F3 while the short-term issuer default rating of Scana was maintained at B.

“The downgrades follow the absence of injunctive relief blocking the recently enacted 14.8% electric rate cut,” Fitch said in a news release.

“While the company is likely to appeal the Aug. 6, 2018 order from the U.S. District Court, the rate cut will be implemented with SCE&G's August billing cycle which began on Aug. 7, 2018. As such, SCE&G will collect 14.8% less electric revenue on an ongoing basis until the South Carolina Public Service Commission (PSC) issues an order in a multi-docketed proceeding, which is expected by Dec. 21, 2018.”

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