S&P Global Ratings has lowered its stand-alone credit profile for Alabama Power Co. to "a" from "a+", citing a "modest weakening" of the company's financial measures due to increased capital spending and regulatory lag on its key cost recovery mechanism.
The rating agency said Aug. 30 that those factors "weaken the company's funds from operations (FFO) to debt to about 23% over the next three years, indicative of financial measures within the lower end of the range for the company's current financial risk profile assessment."
The rating agency also kept its ratings on Alabama Power, including its 'A-' issuer credit rating, on CreditWatch negative where these were placed on Aug. 10, as Alabama Power parent Southern Co. continues to face "complexities, uncertainties, and construction risks" tied to the Alvin W. Vogtle nuclear plant expansion project.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.