S&P affirms Duke Energy ratings on sale of utility stake to Singapore fund

S&P Global Ratings on Feb. 2 affirmed the issuer credit ratings of Duke Energy Corp. and its subsidiaries at BBB+ following the company's announced sale of a nearly 20% stake in Duke Energy Indiana LLC to an affiliate of Singapore sovereign wealth fund GIC Pte. Ltd. for $2.05 billion.

"Our assessment of Duke Energy's business risk profile remains unchanged at excellent, largely reflecting the company's large size, geographic diversity, and management of regulatory risk," the rating agency wrote in a report.

As a result of the planned sale, S&P Global Ratings revised downward its group ratings status of Duke Energy Indiana, Duke Energy Ohio Inc., Duke Energy Kentucky Inc. and Piedmont Natural Gas Co. Inc. to strategically important from core. "We no longer view these subsidiaries as highly unlikely to be sold," Ratings said.

The outlook for Duke Energy and its subsidiaries is stable, reflecting Ratings' expectation that the company will manage its regulatory risk despite high capital spending and ongoing energy transition.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.