DTE Energy Co.

The stable outlook on DTE reflects our expectation that management will maintain its business risk profile by focusing on its core utility operations and reaching constructive regulatory outcomes while not disproportionately expanding its nonutility operations over the next two years even after increasing its pipeline operations. The outlook also reflects our base-case assumption that management will maintain credit protection measures in line with our current financial risk profile assessment, including adjusted funds from operations (FFO) to debt of 14%-16%. We could lower our ratings on DTE if its core financial measures consistently underperform our base-case forecast and remain consistently at less credit-supportive levels, including adjusted FFO to total debt of less than 13%. We could also lower our ratings if

...We anticipate that the coronavirus pandemic will have a minimal effect on DTE Energy Co. given its low-risk regulated business and generation of more than 50% of its revenue from residential customers. Additionally, increased residential demand combined with the favorable weather may partially offset the negative effects stemming from the pandemic. DTE benefits from its vertically integrated electric and gas distribution operations. DTE will continue to focus on improving its regulated utility business without disproportionately expanding its other businesses. Management continues to demonstrate and indicate its commitment to a strategy focused on its regulated operations. The company's effective management of regulatory risk and the favorable Michigan regulatory framework continue to support its credit quality. We expect DTE to continue to benefit from the cost-recovery mechanisms allowed under the favorable Michigan regulatory framework....

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