...Fitch Ratings downgraded the long-term Issuer Default Rating (IDR) of OGE Energy Corp. (OGE) on Aug. 1, 2018 to `BBB+' from `A¡' and the long-term IDR of Oklahoma Gas & Electric Company (OG&E) to `A¡' from `A'. Fitch has affirmed OGE's short-term IDR at `F2' and downgraded OG&E's short-term IDR to `F2' from `F1'. The Rating Outlook for both entities is Stable. Fitch believes the regulatory environment in Oklahoma has become challenging, underscored by the unfavorable rate case outcomes in 2017 and 2018 and the uncertain treatment of environmental compliance investment, resulting in higher operating risks and weaker financial metrics for both OG&E and OGE as compared to the historical levels. Fitch expects OG&E and OGE to produce, on average, FFO-adjusted leverage ratio of approximately 4.0x and 4.2x, respectively, in the next three years, which is approximately 60bps weaker than the historical levels. OG&E's EBITDA represents approximately 75%¡80% of the total EBITDA. OGE and OG&E's rating...
