Fitch Ratings on Oct. 16 affirmed the long-term issuer default rating of Berkshire Hathaway Energy at BBB+ on its utility subsidiaries' low-risk business profiles, predictable cash flows, strong internal cash flows and affiliation with Berkshire Hathaway Inc.
Berkshire Hathaway's strong credit profile, large cash position, investment appetite, ability to utilize tax shields and fund strategic growth opportunities helped Berkshire Hathaway Energy secure its ratings. Berkshire Hathaway Energy's funds from operations, or FFO, fixed charge coverage and FFO-adjusted leverage ratios are expected to range from 4.0x to 4.5x and 4.6x to 5.2x, respectively, for the period of 2018 to 2022, which is consistent with its investment-grade ratings given a low business risk profile and strong projected cash flows.
Fitch also affirmed the long-term issuer default ratings of PacifiCorp at A- with a stable outlook. Fitch expects the company to have FFO-adjusted leverage of 3.7x to 4.0x for for the period of 2018 to 2022.
MidAmerican Funding LLC's long-term issuer default ratings were affirmed at BBB+, and MidAmerican Energy Co.'s were affirmed at A-, respectively. Both companies received stable outlooks. Fitch expects 2018 to 2022 FFO adjusted leverage for MidAmerican Energy to range between 3.6x to 3.8x.
Fitch affirmed the long-term issuer default ratings of NV Energy Inc. at BBB-. Nevada Power Co. and Sierra Pacific Power Co.'s long-term issuer default ratings were affirmed at BBB. The companies received positive outlooks from Fitch because of their association with a "strong corporate parent, solid financial metrics and uncertainty regarding the upcoming referendum on full retail customer choice."
Northern Natural Gas Co.'s long-term issuer default rating was affirmed at A with a stable outlook. FFO-adjusted leverage for Northern Natural Gas is estimated by Fitch to be 3.4x or lower.
The rating agency also withdrew the F2 short-term ratings for Berkshire Hathaway Energy, PacifiCorp, MidAmerican Energy, Nevada Power and Sierra Pacific Power for commercial reasons.