Summary: American States Water Co. - S&P Global Ratings’ Credit Research

Summary: American States Water Co.

Summary: American States Water Co. - S&P Global Ratings’ Credit Research
Summary: American States Water Co.
Published Jul 12, 2018
8 pages (2304 words) — Published Jul 12, 2018
Price US$ 225.00  |  Buy this Report Now

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Abstract:

American States Water Co. (ASWC) is a mostly lower-risk, rate-regulated water utility. ASWC's nonregulated, contracted water business represents about 20% of the company's consolidated revenues. We view ASWC's regulatory risk management as above average, reflecting the company's use of credit-supportive regulatory mechanisms in California. In addition, the company's size relative to its smaller peers continues to support our assessment of the company's business risk. We assess ASWC's financial ratios using more moderate financial benchmark tables than those for the typical corporate issuer, reflecting the company's mostly lower-risk, rate-regulated business and management of regulatory risk. We expect ASWC's funds from operations (FFO) to debt to weaken to about 24% in 2019 but stabilize at about 26% beginning in 2020. Weaker financial

  
Brief Excerpt:

...Business Risk: Excellent Financial Risk: Intermediate + American States Water Co. (ASWC) is a mostly lower-risk, rate-regulated water utility. + ASWC's nonregulated, contracted water business represents about 20% of the company's consolidated revenues. + We view ASWC's regulatory risk management as above average, reflecting the company's use of credit-supportive regulatory mechanisms in California. + In addition, the company's size relative to its smaller peers continues to support our assessment of the company's business risk. + We assess ASWC's financial ratios using more moderate financial benchmark tables than those for the typical corporate issuer, reflecting the company's mostly lower-risk, rate-regulated business and management of regulatory risk. + We expect ASWC's funds from operations (FFO) to debt to weaken to about 24% in 2019 but stabilize at about 26% beginning in 2020. Weaker financial measures in 2019 reflect high capital spending, U.S. tax reform, and lower authorized returns...

  
Report Type:

Summary

Ticker
Issuer
GICS
Water Utilities (55104010)
Sector
Global Issuers
Country
Region
Format:
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MLA:
S&P Global Ratings’ Credit Research. "Summary: American States Water Co." Jul 12, 2018. Alacra Store. Nov 19, 2018. <http://www.alacrastore.com/s-and-p-credit-research/Summary-American-States-Water-Co-2070708>
  
APA:
S&P Global Ratings’ Credit Research. (). Summary: American States Water Co. Jul 12, 2018. New York, NY: Alacra Store. Retrieved Nov 19, 2018 from <http://www.alacrastore.com/s-and-p-credit-research/Summary-American-States-Water-Co-2070708>
  
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