FirstEnergy Corp. -- Moody's revises outlook on FirstEnergy Corp and merchant subsidiaries to negative following FERC order

New York, April 28, 2016 -- Moody's Investors Service today revised the outlook on Baa3 senior unsecured ratings at FirstEnergy Corp. (FirstEnergy), FirstEnergy Solutions Corp (FES), Allegheny Energy Supply Company LLC (AES) and Allegheny Generating Company (AGC) to negative from stable. The outlook revision follows an order by the FERC late on April 27, 2016, revoking the affiliate waiver between FirstEnergy'sOhio utilities and FES. This would imply that the PPA between FES and FirstEnergy'sOhio utilities can no longer go into effect on June 1, 2016. If desired, FirstEnergy must submit the PPA to FERC for consideration, and the FERC Commission will commence a review process which could take 6-12 months but potentially longer. The negative outlook on AGC reflects the fact that AES it is the majority owner and main source of cash flow.

Vollständigen Artikel bei Moodys lesen