Research Update: Alliant Energy Corp. Outlook Revised To Negative On Weak Financial Performance, 'A-' Rating Affirmed

Alliant Energy Corp.'s (AEC) financial measures have remained weak for the current rating, and we expect continued financial pressure because of robust capital spending. As a result, we revised our rating outlooks on AEC and its subsidiary, Interstate Power&Light Co. (IPL), to negative from stable. At the same time, we affirmed our ratings on AEC and IPL, including our 'A-' issuer credit rating. We also affirmed our ratings on Wisconsin Power&Light Co. (WPL) and maintained our negative rating outlook on the company. The negative rating outlooks on AEC and IPL reflect weak consolidated financial measures that have been consistently below our downgrade threshold of funds from operations (FFO) to debt of 15% and our expectation that

...- Alliant Energy Corp.'s (AEC) financial measures have remained weak for the current rating, and we expect continued financial pressure because of robust capital spending. - As a result, we revised our rating outlooks on AEC and its subsidiary, Interstate Power & Light Co. (IPL), to negative from stable. At the same time, we affirmed our ratings on AEC and IPL, including our 'A-' issuer credit rating. We also affirmed our ratings on Wisconsin Power & Light Co. (WPL) and maintained our negative rating outlook on the company. - The negative rating outlooks on AEC and IPL reflect weak consolidated financial measures that have been consistently below our downgrade threshold of funds from operations (FFO) to debt of 15% and our expectation that we could downgrade the company within the next 18 months if financial performance does not consistently improve. - The negative rating outlook on WPL reflects the potential for a downgrade within the next 12 months if AEC is downgraded or WPL's stand-alone...

Research Update