Research Update: Duke Energy Corp. And Subsidiaries Outlooks Revised To Stable On Announced Equity Offering; Ratings Affirmed

Charlotte, N.C.-based Duke Energy Corp. has announced a $2.5 billion equity offering, structured with a forward contract that it expects to close by year-end 2020. We expect the proceeds will be used for capital spending, working capital, and to reduce debt, which we anticipate will result in improving financial measures that are consistently above our downgrade threshold of funds from operations (FFO) to debt of 15%. We believe this announcement is again indicative of management's commitment to credit quality that has been consistently demonstrated over the past two years. We are revising our outlook on Duke Energy and all its subsidiaries to stable from negative, and affirming our ratings on the company and all its subsidiaries. In addition, multiple subsidiaries

...- Charlotte, N.C.-based Duke Energy Corp. has announced a $2.5 billion equity offering, structured with a forward contract that it expects to close by year-end 2020. - We expect the proceeds will be used for capital spending, working capital, and to reduce debt, which we anticipate will result in improving financial measures that are consistently above our downgrade threshold of funds from operations (FFO) to debt of 15%. - We believe this announcement is again indicative of management's commitment to credit quality that has been consistently demonstrated over the past two years. - We are revising our outlook on Duke Energy and all its subsidiaries to stable from negative, and affirming our ratings on the company and all its subsidiaries. - In addition, multiple subsidiaries are no longer "under criteria observation" due to a change in our revised group rating methodology. - The stable outlook reflects our view that the company's consolidated financial measures will remain above our downgrade...

Research Update