S&P Global Ratings on June 4 upgraded its issuer credit ratings on Great Plains Energy Inc. and Westar Energy Inc. to A- from BBB+ in expectation of the imminent closing of their merger.
The merger closed later the same date, resulting in a combined company named Evergy Inc.
S&P also raised its issuer credit ratings on Great Plains subsidiaries Kansas City Power & Light Co. and KCP&L Greater Missouri Operations Co. and on Westar subsidiary Kansas Gas and Electric Co. to A- from BBB+. The outlook on all the companies is stable.
"The upgrades of [Great Plains Energy] and its subsidiaries reflect our view that the newly merged company will have an enhanced business risk profile," said S&P.
In particular, the rating agency noted greater control over the Wolf Creek nuclear plant, which the two companies jointly owned at 47% each prior to the merger. The remaining 6% interest in the plant is held by Kansas Electric Power Cooperative Inc.
S&P also cited the diverse electric utility cash flow sources, more balanced regulatory framework and a larger customer base of about 1.6 million customers for the combined entity.
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.
