Research Update: FirstEnergy Corp. And Subsidiaries Ratings Affirmed Following Implementation Of New M&G Criteria; Off UCO

We have completed our review of FirstEnergy Corp. and its subsidiaries under our new criteria for management and governance (M&G; see "Management And Governance Credit Factors For Corporate Entities," published Jan. 7, 2024). As a result, we have assigned new M&G assessments of moderately negative to the companies. At the same time, we affirmed our issuer credit ratings and issue-level ratings on FirstEnergy and its subsidiaries and removed all our ratings from under criteria observation. The positive outlook on FirstEnergy reflects our expectation that at the close of the company's sale of a 30% interest in FirstEnergy Transmission LLC (FET), financial measures will improve. Specifically, we expect FirstEnergy's funds from operations (FFO) to debt to improve to be consistently above

...- We have completed our review of FirstEnergy Corp. and its subsidiaries under our new criteria for management and governance (M&G; see "Management And Governance Credit Factors For Corporate Entities," published Jan. 7, 2024). - As a result, we have assigned new M&G assessments of moderately negative to the companies. - At the same time, we affirmed our issuer credit ratings and issue-level ratings on FirstEnergy and its subsidiaries and removed all our ratings from under criteria observation. - The positive outlook on FirstEnergy reflects our expectation that at the close of the company's sale of a 30% interest in FirstEnergy Transmission LLC (FET), financial measures will improve. Specifically, we expect FirstEnergy's funds from operations (FFO) to debt to improve to be consistently above 12%. The outlook also incorporates the prospect for an additional upgrade if financial measures strengthen while the company continues to meet its obligations under its deferred prosecution agreement...

Research Update