S&P lifts Western Power

Standard & Poor’s said it raised the long-term corporate credit rating on Western Power Distribution Ltd. to A- from BBB and affirmed its A-2 short-term rating.

The outlook is stable.

S&P also said it raised the corporate credit ratings on Western Power’s operating subsidiaries, Western Power Distribution (East Midlands) plc, Western Power Distribution (West Midlands) plc, Western Power Distribution (South West) plc and Western Power Distribution (South Wales) plc to A- from BBB.

The upgrades reflect similar actions taken on the parent company, PPL Corp. and its U.S. subsidiaries following PPL’s spin-off of its unregulated power generation subsidiary, PPL Energy Supply LLC, the agency said.

The divestiture of PPL Energy Supply is beneficial to PPL’s business risk profile as unregulated operations are materially riskier than those that are regulated, S&P said.

The company has an excellent business risk profile, supported by the stable and transparent regulatory environment in which the electricity distribution companies operate, the agency said.

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