...Ratings Linkage: Indianapolis Power & Light Co.'s (IPL) standalone credit metrics are well positioned for its rating given its low-risk business profile and moderate capital structure. However, its rating is constrained by IPALCO Enterprises, Inc. and remains one notch above IPALCO's. IPL is the sole source of dividend for IPALCO. IPALCO's parent-level debt represents approximately 32% of total debt as of Dec. 31, 2016. Fitch Ratings views IPALCO's consolidated leverage as a primary rating driver for both companies, along with IPALCO's reliance on IPL to support debt service and the subordination of IPALCO's debt to that of IPL's. CCGT Delay Manageable: Fitch believes the delays of the Eagle Valley combined cycle gas turbine (CCGT) plant construction will not meaningfully affect IPL and IPALCO's credit quality. Due to delays of the engineering procurement and construction (EPC) contractor's progress on the construction, the in-service date was delayed by one year to the first half of 2018,...
