Research Update: American Electric Power Co. Inc. Downgraded To 'BBB+' On Weak Financial Measures, Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: American Electric Power Co. Inc. Downgraded To 'BBB+' On Weak Financial Measures, Outlook Negative

Research Update: American Electric Power Co. Inc. Downgraded To 'BBB+' On Weak Financial Measures, Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: American Electric Power Co. Inc. Downgraded To 'BBB+' On Weak Financial Measures, Outlook Negative
Published Mar 04, 2024
14 pages (3970 words) — Published Mar 04, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

American Electric Power Co. Inc.'s (AEP) consolidated 2023 financial measures were materially weaker than our downgrade threshold for the 'A-' rating. We also expect that the company's financial performance will remain pressured because of its robust capital spending program. Therefore, we downgraded AEP and all of its subsidiaries, excluding Kentucky Power Co. (KPCo), by one notch. This includes lowering our issuer credit rating (ICR) on AEP to 'BBB+' from 'A-'. At the same time, we affirmed all of our ratings on KPCo, including the 'BBB' ICR. The negative outlook on AEP and its subsidiaries reflects the company's minimal financial cushion relative to our downgrade threshold. In 2022 and 2023, AEP had capital spending of only about $6.7 billion and about

  
Brief Excerpt:

...- American Electric Power Co. Inc.'s (AEP) consolidated 2023 financial measures were materially weaker than our downgrade threshold for the 'A-' rating. We also expect that the company's financial performance will remain pressured because of its robust capital spending program. - Therefore, we downgraded AEP and all of its subsidiaries, excluding Kentucky Power Co. (KPCo), by one notch. This includes lowering our issuer credit rating (ICR) on AEP to '###+' from 'A-'. - At the same time, we affirmed all of our ratings on KPCo, including the '###' ICR. - The negative outlook on AEP and its subsidiaries reflects the company's minimal financial cushion relative to our downgrade threshold....

  
Report Type:

Research Update

Ticker
AEP
Issuer
American Electric Power Co. Inc.
GICS
Electric Utilities (55101010)
Sector
Global Issuers , Public Finance , Structured Finance
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: American Electric Power Co. Inc. Downgraded To 'BBB+' On Weak Financial Measures, Outlook Negative" Mar 04, 2024. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-American-Electric-Power-Co-Inc-Downgraded-To-BBB-On-Weak-Financial-Measures-Outlook-Negative-3134075>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: American Electric Power Co. Inc. Downgraded To 'BBB+' On Weak Financial Measures, Outlook Negative Mar 04, 2024. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-American-Electric-Power-Co-Inc-Downgraded-To-BBB-On-Weak-Financial-Measures-Outlook-Negative-3134075>
  
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