Fitch puts NV Energy on positive watch

Fitch Ratings said it placed the ratings of NV Energy, Inc. and its operating subsidiaries, Nevada Power Co. and Sierra Pacific Power Co. on Rating Watch positive.

The action reflects the planned acquisition of NV Energy by MidAmerican Energy Holdings Co.

Fitch also said it affirmed MidAmerican Energy's BBB+ ratings.

The positive watch reflects the greater financial flexibility for NV Energy if the acquisition closes, the balanced regulatory environment in Nevada and the company's improving financial profile due to significant debt reduction, the agency said.

The positive watch also reflects the company's higher earnings and lower interest expense, along with its relatively low 2013 to 2015 capital expenditure following completion of NV Energy's major generation build cycle, Fitch said.

Fitch said it believes that completion of the proposed acquisition would likely result in a one-notch upgrade of NV Energy and its utility operating subsidiaries.

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