...- DTE Energy Co. announced it intends to spin off its higher-risk pipeline and midstream energy business in a tax-free distribution to shareholders. The move highlights DTE's strategic shift to its lower-risk regulated utility operations. - We are affirming our ratings on DTE, including the '###+' issuer credit rating. At the same time, we are lowering our upside threshold to require funds from operations (FFO) to debt consistently above 18%, versus our previous threshold of 23%. The revision reflects our view that the spin-off will strengthen DTE's business risk and refocus its growth. The company plans to retain certain unregulated operations from power and industrial projects (P&I) and energy trading, which will account for about 10% of the consolidated company. - On a pro forma basis, we expect the utility businesses will account for about 90% of the consolidated company. We expect the spin-off will result in the transfer of about $3 billion of debt to the new midstream entity. We expect...
