Research Update: Evergy Inc. Outlook Revised To Negative On Increasing Capital Spending And Limited Financial Cushion

Evergy Inc. is proposing to add over 3,800 megawatts (MW) of renewable capacity and retire about 1,900 MW of fossil fuel-based generation through 2032. At the same time Evergy does not expect to increase base rates in Missouri and Kansas until December 2022 and 2023, respectively. We therefore anticipate Evergy's financial measures could suffer from regulatory lag and remain at the lower end of the range for its financial risk profile category. We revised our outlook on parent Evergy and its subsidiaries--Evergy Kansas Central Inc., Evergy Kansas South Inc., Evergy Metro Inc., and Evergy Missouri West Inc.--to negative from stable and affirmed our 'A-' long-term issuer credit rating. The negative outlook on Evergy and its subsidiaries reflects our expectation that

...- Evergy Inc. is proposing to add over 3,800 megawatts (MW) of renewable capacity and retire about 1,900 MW of fossil fuel-based generation through 2032. At the same time Evergy does not expect to increase base rates in Missouri and Kansas until December 2022 and 2023, respectively. - We therefore anticipate Evergy's financial measures could suffer from regulatory lag and remain at the lower end of the range for its financial risk profile category. - We revised our outlook on parent Evergy and its subsidiaries--Evergy Kansas Central Inc., Evergy Kansas South Inc., Evergy Metro Inc., and Evergy Missouri West Inc.--to negative from stable and affirmed our 'A-' long-term issuer credit rating. - The negative outlook on Evergy and its subsidiaries reflects our expectation that the company's financial measures will remain at the lower end of the range for its financial risk profile category. The outlook also reflects our expectation of a modest weakening of Evergy's management of regulatory risk...

Research Update