logo
  Join        Login             Stock Quote

Northeast Utilities (NU) IDR Upgraded To 'BBB+' By Fitch, Stable Outlook

 April 10, 2012 03:55 PM
 


The issuer default rating of Northeast Utilities (NYSE:NU) was upgraded by Fitch Ratings to "BBB+" from "BBB" and the IDR of NSTAR downgraded to "BBB+" from "A-" after the merger of NSTAR into NU.

The upgrade of Northeast Utilities is driven by the greater financial flexibility and improved capability to fund the substantial capital investment particularly for electric transmission projects planned over the next three years.

Additionally, Fitch has removed ratings of Northeast Utilities from Rating Watch Positive and NSTAR's from Rating Watch Negative. The Rating Outlook is now Stable. NSTAR LLC (successor to NSTAR; name change will be effective on closing) will be a second-tier holding company subsidiary of Northeast Utilities.

[Related -Stock Upgrades And Downgrades: CAT, CRUS, ITC, NCR, NU, POM, YHOO]

Fitch expects management of Northeast Utilities to effectively utilize synergies achieved through the merger, as well as effective cost management over the respective distribution base rate freeze periods to stabilize credit metrics.

Fitch forecasts key performance metrics of EBITDA-to-interest and funds from operations (FFO)-to-debt above 5.0 times and 17.0%, respectively through 2014, which approximate 'BBB+' financial guideline measures.

Fitch has equalized the ratings of Northeast Utilities and NSTAR LLC (successor to NSTAR), which is a second-tier holding company subsidiary of Northeast Utilities. In addition, Fitch assigns an 'F2' rating to NSTAR LLC's new $175 million commercial paper (CP) program.

NU is trading down 2.23% at $35.97 on Tuesday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article image3 US Updates Show Ongoing Growth

Three economic updates today provide more evidence that moderate growth endures for the US. The numbers du read on...

article imageBuy These Solar Stocks Before They Snapback

Sometimes the market hands you a gift. And it would be foolish not to take it. Thanks to general market read on...

article imageInvestors Are Even More Euphoric And Confident.

As noted on the blog last Thursday, even though the market had been down for three straight weeks, last read on...

article imageThe Butterfly Machine

There’s a phenomenon called the Butterfly Effect. One common quotation is “It has been said that something read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.