FirstEnergy Corp. -- Moody's: FirstEnergy Corp.'s weaker financial guidance will not affect ratings, for now

New York, March 09, 2015 -- Moody's Investors Service today said that FirstEnergy Corp.'s (FE, Baa3 stable) lower earnings guidance announced on Feb 17, 2015, has no impact on FE's ratings or outlook for now. FE provided full-year 2015 earnings guidance which lowered their Cash from Operations pre-WC by about $350 million which was significantly below expectations. The key factors that drove the reduction included lower earnings from the competitive business as well as at Jersey Central Power & Light (Baa2 negative) on account of the pending rate case, offset partially by higher earnings at the Pennsylvania utilities and FirstEnergy Transmission (FET, Baa3 stable). Our stable rating outlook incorporated expectations that FE would maintain consolidated financial ratios appropriate for an investment grade hybrid utility holding company. This includes a ratio of cash from operations pre-WC to debt of 13-15%, CFO-pre WC interest coverage of about 3.5x, and retained cash flow to debt of about 10-11%.

Vollständigen Artikel bei Moodys lesen