Research Update: Duke Energy Corp. And Subsidiaries Ratings Affirmed Following Atlantic Coast Pipeline Exit; Outlook Stable

Charlotte, N.C.- based Duke Energy Corp. has announced that it will no longer invest in the construction of the Atlantic Coast Pipeline (ACP) project, effectively exiting its joint venture participation. Duke Energy expects to take an approximate $2 billion to $2.5 billion pre-tax charge to its earnings in 2020. We view the cancelation of the ACP project as negative for the company's longer-term cash flow. While we expect that the company will implement various plans to bolster its credit measures, our base case, incorporating these initiatives, assumes that the company will consistently operate with only very minimal financial cushion for its current rating. We are affirming our ratings on Duke Energy Corp. and its rated subsidiaries, including Duke's 'A-' long-term

...- Charlotte, N.C.- based Duke Energy Corp. has announced that it will no longer invest in the construction of the Atlantic Coast Pipeline (ACP) project, effectively exiting its joint venture participation. - Duke Energy expects to take an approximate $2 billion to $2.5 billion pre-tax charge to its earnings in 2020. - We view the cancelation of the ACP project as negative for the company's longer-term cash flow. While we expect that the company will implement various plans to bolster its credit measures, our base case, incorporating these initiatives, assumes that the company will consistently operate with only very minimal financial cushion for its current rating. - We are affirming our ratings on Duke Energy Corp. and its rated subsidiaries, including Duke's 'A-' long-term issuer credit rating. The outlook is stable. - The stable outlook reflects our view that Duke's consolidated financial measures will likely remain just above our downgrade threshold with only very minimal cushion at...

Research Update