Evergy Metro Inc.

Overview Key strengths Key risks Fully regulated, vertically integrated electric utility operation. Discretionary cash-flow deficit expected to persist due to robust capital spending. Insulated subsidiary of a parent with robust financial measures. Operating and environmental risks associated with its ownership of nuclear and coal-fired generation. Mostly residential (about 88%) customer base, providing limited industrial exposure. Limited geographic diversity, increasing business risk. This underpins our 'A-' issuer credit rating (ICR) on Evergy Metro, which is one notch higher than our 'BBB+' ICR on Evergy. Our assessment largely reflects our view that Evergy Metro is a stand-alone legal entity that functions independently, has its own funding arrangement, and doesn't commingle funds, assets, or cash flows with other members of the group. In

...We assess Evergy Metro Inc. (Evergy Metro) as an insulated subsidiary of parent Evergy Inc. (Evergy). This underpins our 'A-' issuer credit rating (ICR) on Evergy Metro, which is one notch higher than our '###+' ICR on Evergy. Our assessment largely reflects our view that Evergy Metro is a stand-alone legal entity that functions independently, has its own funding arrangement, and doesn't commingle funds, assets, or cash flows with other members of the group. In addition, we view Evergy Metro as insulated from a default by another entity within the group. Evergy Metro operates a fully regulated, low-risk utility service that serves local economies in the Kansas City metro area, Western Missouri, and Eastern Kansas. Accordingly, the company's utility strategy...

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