Regulated electric generation and distribution and lower-risk gas distribution operations. Effective management of regulatory risk in Michigan, leading to mostly constructive rate case outcomes. Limited geographic and regulatory diversity since confined to Michigan. Larger well-diversified residential and commercial customer base with some exposure to industrial customers. Economic growth in service territory. Regulated utility strategy. Limited non-utility operations, including power projects and a bank. Strengthening financial measures. Elevated debt leverage partly from holding company debt. Negative discretionary cash flow leading to external funding needs. Liquidity covers significant debt maturities and elevated capital spending. Our stable rating outlook on CMS Energy Corp. reflects our expectation that management will continue to focus on its core utility operations and reach constructive regulatory outcomes to
