...In November 2018, Fitch Ratings upgraded Indianapolis Power & Light Company's (IPL) Long-Term Issuer Default Rating (IDR) to `BBB+' from `BBB¡'. Fitch also upgraded IPL's parent holding company IPALCO Enterprises, Inc.'s IDR to `BBB¡' from `BB+'. The Rating Outlooks for both companies were revised to Stable from Positive. The rating upgrades followed the completion of IPL's Eagle Valley combined cycle gas turbine (CCGT) generation plant and the approval of the associated base rate case. IPL's standalone credit metrics are well-positioned for its rating given its low-risk business profile and moderate capital structure. However, its ratings are upwardly constrained by IPALCO. This reflects Fitch Ratings' view that IPALCO's consolidated leverage is a primary rating driver for both companies due to IPALCO's reliance on IPL to support debt service. The ratings and Outlook also reflect the supportive regulatory environment in Indiana and the improving fuel mix....
