Research Update: Evergy Inc. And Subsidiaries Downgraded By One Notch On Weakening Financials; Outlook Revised To Stable

On Nov. 21, 2023, the Kansas Corporation Commission (KCC), adopted a settlement in the pending rate cases of Evergy Inc.'s Kansas subsidiaries, Evergy Kansas Central Inc. and Evergy Metro Inc. (Metro), and authorized Evergy Kansas Central a $74 million increase and Metro a $32.9 million decrease. New rates will be effective Dec. 21, 2023. Evergy's consolidated financial measures have weakened over the past few years from higher expenses, including interest and capital spending, and lower cost recovery. We therefore expect Evergy's S&P Global Ratings-adjusted funds from operations (FFO) to debt will consistently be in the 14%-15% range through 2026. Accordingly, we lowered our issuer credit ratings one notch on Evergy and its subsidiaries Evergy Kansas Central, Evergy Missouri West Inc.,

...- On Nov. 21, 2023, the Kansas Corporation Commission (KCC), adopted a settlement in the pending rate cases of Evergy Inc.'s Kansas subsidiaries, Evergy Kansas Central Inc. and Evergy Metro Inc. (Metro), and authorized Evergy Kansas Central a $74 million increase and Metro a $32.9 million decrease. New rates will be effective Dec. 21, 2023. - Evergy's consolidated financial measures have weakened over the past few years from higher expenses, including interest and capital spending, and lower cost recovery. We therefore expect Evergy's S&P Global Ratings-adjusted funds from operations (FFO) to debt will consistently be in the 14%-15% range through 2026. - Accordingly, we lowered our issuer credit ratings one notch on Evergy and its subsidiaries Evergy Kansas Central, Evergy Missouri West Inc., and Evergy Kansas South Inc. to '###+' from 'A-'. We also lowered Evergy Metro's issuer credit rating one notch to 'A-' from 'A'. - We affirmed our 'A-2' short-term and commercial paper ratings on...

Research Update