trending Market Intelligence /marketintelligence/en/news-insights/trending/PEkRRREZ6fr5gsgh8P107g2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Fitch, Moody's retain negative outlook for SCANA, SCE&G

Q2: U.S. Solar and Wind Power by the Numbers

Essential Energy Insights - September 17, 2020

Essential Energy Insights - September, 2020

Rate case activity slips, COVID-19 proceedings remain at the forefront in August

Fitch, Moody's retain negative outlook for SCANA, SCE&G

Following the abandonment of the V.C. Summer expansion, Fitch Ratings and Moody's on Aug. 1 both affirmed the ratings and negative outlook for SCANA Corp. and its subsidiary South Carolina Electric & Gas Co.

Fitch maintained its issuer default ratings of SCE&G at BBB and SCANA at BBB- and retained both at rating watch negative, citing the "uncertainty surrounding the recovery terms for $4.9 billion of stranded costs."

The rating agency said the decision of SCE&G and development partner Santee Cooper to halt the construction of two new 1,117-MW reactors at the V.C. Summer facility has removed financing and technological risks but raised material regulatory risks, as it will be the first application under the abandonment clause of South Carolina's Base Load Review Act.

"While the South Carolina Public Service Commission has been supportive of the nuclear project since its inception, Fitch is concerned that the magnitude of the stranded costs could result in an adverse regulatory order to the abandonment petition and constrain credit metrics for a prolonged period," analysts noted.

Fitch expects the commission will approve SCE&G's request to abandon the project but sees "material downward risk for the allowed ROE and approved rate base." The companies' rating watch negative may be resolved once the commission outlines the terms of the recovery of stranded costs by Feb. 1, 2018, according to the rating agency.

Similarly, Moody's affirmed its ratings of SCE&G at Baa2 and SCANA at Baa3, with negative outlook, on perceived regulatory risks. The rating agency also affirmed Santee Cooper's revenue bonds at A1, with negative outlook.

"Overall, Moody's views the decision to abandon the project as credit positive. However, the utility now faces regulatory risk as it will be challenged to maintain a credit supportive relationship with its regulator as it seeks to recover the costs incurred to build a plant that will never produce electricity," analysts said in a note to investors.

The negative outlook also reflects the weak financial position of project contractor Toshiba Corp., which may affect its ability to pay $2.17 billion in full satisfaction of its guaranty of obligations to SCE&G.

Santee Cooper, legally known as South Carolina Public Service Authority, owns $7.7 billion of outstanding revenue bonds, which include $4.4 billion related to financing and construction costs of the 35%-completed Summer units 2 and 3.