S&P revises WEC outlook to negative

S&P said it changed its outlook for WEC Energy Group Inc. to negative from stable. The agency also revised the outlooks for WEC’s subsidiaries Integrys Holding Inc. and Elm Road Generating Station Supercritical LLC to negative from stable.

WEC plans to fund its capital plan without selling any equity. This plan requires $12.4 billion of investments through 2025.

“WEC's negative operating cash flow has grown in recent years primarily from high capital spending and large nonutility acquisitions. We believe the company is disproportionately funding this cash deficit with incremental debt, weakening financial measures. As a result, we believe its consolidated funds from operations (FFO) to debt could reside below our downgrade threshold for the next three years,” the agency said in a press release.

Sufficient insulating measures for WEC’s other subsidiaries Wisconsin Electric Power Co., Wisconsin Gas, Wisconsin Public Service Co., Peoples Gas Light & Coke Co. kept their outlooks stable, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.