Fitch shifts Puget Energy view to stable

Fitch Ratings said it changed the outlook to stable from negative for Puget Energy Inc. and its subsidiary Puget Sound Energy, Inc.

The companies’ outlook improved because of Washington state Senate Bill 5295, which was signed into law in last month, the agency said.

“The legislation allows for multi-year rate plans, reducing regulatory lag. Certain rate adjustments and mitigating actions after the July 2020 rate order are expected to stabilize FFO leverage at around 5.5x in the next two years. FFO leverage could further improve to below 5.5x assuming Washington Utilities and Transportation Commission (WUTC) implements the legislation in a credit-supportive manner in the next rate case,” Fitch said in a press release.

The agency also affirmed the Puget Energy’s BBB- issuer rating and Puget Sound Energy’s BBB+ issuer rating.

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