Evergy Metro

The stable outlook on Evergy Metro (Metro) reflects S&P Global Ratings' base-case scenario that the utility will generate sufficient cash flow to maintain financial measures that support adjusted funds from operations (FFO) to debt of 20%-22% from 2019 through 2021, which is at the upper end of the significant financial risk profile category. The outlook also reflects our expectation of a clear path to realizing proposed merger synergies that result in operational improvements and cost savings. We could lower our rating on Metro over the next 24 months if we lower our rating on Evergy, or if the utility's stand-alone financial measures weaken such that its FFO to debt is consistently lower than 20%. We could raise our rating on

...Evergy Metro's retail electric sales are minimally exposed to industrial customer economics. Of Evergy Metro's retail electric sales, only about 10% are generated from sales to industrial customers. This provides some cushion primarily against economic cyclicality. Evergy Metro's manageable maturing long-term debt position over the next five years alleviates cash needs. With limited maturities over the next 12 months, and only $380 million in long-term debt maturing over the next five years, Evergy Metro's liquidity positions it to withstand unexpected cash needs....

Full Report