Moody’s Downgrades AEP, AEP Texas, OK PSO and Ohio OPCo Senior Unsecured Notes, But Secure Outlook
“Weakened financial profiles…large capital programs…increased use of leverage.” Yet AEP reported strong 2Q growth earlier on Thursday.
August 7, 2020
Moody’s Investors Service said on Thursday it’s downgraded the long-term ratings of American Electric Power Company, Inc. senior unsecured down to to Baa2 from Baa1 and subsidiary AEP Texas Inc., with senior unsecured down to Baa2 from Baa1.
Moody’s also said it downgraded Ohio Power Company (OPCo) senior unsecured to A3 from A2, and Public Service Company of Oklahoma (PSO) senior unsecured to Baa1 from A3.
At the same time, Moody’s revised the outlooks for AEP, AEP Texas, OPCo and PSO to stable from negative.
AEP earlier on Thursday had reported strong second-quarter 2020 GAAP earnings of $1.05 per share; second-quarter 2020 operating earnings of $1.08 per share and reaffirmed 2020 operating earnings (non-GAAP) guidance range of $4.25 to $4.45 per share and 5% to 7% long-term growth rate…….