Regulated electric generation and distribution and lower-risk gas distribution operations; Effective management of regulatory risk in Michigan, leading to mostly constructive cost recovery; Geographic and regulatory diversity limited to Michigan; Larger, well-diversified, residential and commercial customer base with some exposure to industrial customers; Economic growth in the company's service territory; and Some 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; and Liquidity covers significant debt maturities and elevated capital spending. The stable rating outlook on CMS Energy Corp. reflects S&P Global Ratings' expectation that management will continue focusing on its core utility operations and reach constructive regulatory outcomes to avoid
