NextEra Energy Inc.

The stable rating outlook incorporates our view that the company will remain focused on growing its regulated utility businesses and will continue to reduce risk at its competitive businesses by strategically growing through contracted assets. We expect NEE's regulated utility business will consistently reflect about 70% of consolidated EBITDA. We expect consolidated financial measures will weaken, reflecting FFO to debt at 21%-24%. We could lower the rating over the next 24 months if the company's effective management of regulatory risk weakens or if the lower-risk regulated utility businesses account for less than 70% of consolidated EBITDA. We could also lower the ratings if FFO to debt consistently weakens to below 21%. This could occur if the company unexpectedly increases debt

...The company has managed the ongoing impacts of the COVID-19 pandemic well. Major capital projects, including renewable expansion, have remained on track during the pandemic, reflecting the company's long-term relationship with its many partners. NextEra Energy Inc.'s (NEE's) utility provides direct financial relief to customers in need and also leverages reserve amortization and hurricane cost deferral mechanisms to minimize volatility. Furthermore, the company benefits from Florida's above-average economic and customer growth. For the past six years, Florida has outperformed the national GDP growth rate, leading to above-average energy demand. Collectively, these benefits have supported the company throughout the pandemic, minimizing risk. More recently, Florida is beginning its economic recovery from COVID-19 as evidenced by improvements in the unemployment rate and consumer confidence, supporting our view that the company will continue to effectively manage the remaining risks of COVID-19....

Full Report