...Introduction: Fitch Ratings presents its second U.S. Utilities, Power & Gas handbook publication, which provides detailed information for the integrated utility companies (IUCs) in Fitch's universe. Fitch published its first handbook on transmission and distribution (T&D) utilities on May 13, 2015. Each company report in this handbook includes rating rationales and rating drivers, along with debt structures and financial summary information. Strong and Stable Median Ratings: The IUC sector has typically enjoyed strong investment- grade ratings, with the historical median centered at `BBB+' for Fitch's coverage. Key rating drivers include supportive regulatory framework, declining commodity prices that have alleviated pressure on customer bills, waning capex, low inflation and low interest rates. Supportive Regulation: Many IUCs have been successful in minimizing the regulatory lag through timely resolution of rate cases and rider recovery of various capital and operating costs. A low-commodity...
